Howard Baron, CPA, JD, Provides Insight on the $787 Billion Stimulus Package
KENNESAW, Ga., March 5, 2009 — Howard Baron, CPA, JD, President of The Baron Companies, a local accounting, tax and investment management firm, urges calm, rational decision-making in the face of financial market turmoil. “Uncertain investors tend to rush from one side of the boat to the other, depending on the perceptions of the hour,” said Baron. “It makes for a rocky ride for all of us.” According to Baron, the positive aspects of the government’s action can be overlooked or dismissed without due consideration. “The government is taking bold action to pull the economy out of a deepening slump and the mistakes of the Great Depression are not being repeated,” he said. “Increases in liquidity and the recently enacted economic stimulus bill are and will be stabilizing influences on our economy.”
Baron urges patience and believes that the results of any stimulus are not likely to be visible until the second half of this year, or even into the first half of 2010. Typically, markets have emerged from recessions with strong gains, leaving aside investors who panicked and stashed their assets away in safer, but lower-reward savings or fixed income investments. After the Internet bubble burst in 2000-2002, equities bounced back by 30% in a single year. For those with a long-term view of the market, now may prove to be an excellent time to buy back in or add to existing positions.
Baron is worried about inflation in the long term because of the massive injection of liquidity by the Federal Reserve to prop up banks and the increased spending as a result of the stimulus bill. “Thanks to the record decrease in oil prices and the fact that the recession is holding prices in check, inflation is not an issue now, but it could emerge as the economy stabilizes. As a hedge against inflation, I’ve begun adding gold to my client’s portfolios,” says Baron.
About The Baron Companies:
The Baron Companies are comprised of: Baron & Company P.C. (CPA firm), Baron Financial Services Inc. (investment management and financial planning) and Baron Payroll Services Inc. Together they form a full-service financial services entity with a focus on providing independent advice and premium service to clients in the areas of taxes, investment, financial planning, accounting, payroll and legal services. Based in Kennesaw, Georgia and with satellite offices in Atlanta and Roswell, Baron Companies serves businesses, successful professionals and high-net-worth clientele.
Website: http://www.baroncompanies.net/
Contact:
Howard Baron, CPA, JD
The Baron Companies
(678) 252-6634
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