There is only one thing that will save the economy, your job and your 401(k) in
2012. You have to have confidence. I know, I know. You think I'm batty as
Julie Andrews spinning up the dirt road to the von Trapp manor with guitar in
hand, singing, "I have confidence in me!" Maybe it is a little crazy. But
it's true. Even the cold, hard facts of this complex global economy make this
same emotional plea. Confidence or a lack there-of is paramount. Fact:
December will mark the eighth straight month of net withdrawals from U.S. mutual
funds. Investors don't have confidence, so they are taking their money and
running. Fact: The European Central Bank continues to set records as continental
banks park their cash there. Why? Because euro zone banks don't have
confidence they will get paid back if they lend to anyone else but the massive
central bank. Just as the phrase "crisis of confidence" characterized the
U.S. credit freeze after Lehman Brothers went bankrupt in 2008, it has become
shorthand for in the debt crisis of Europe, too. Fact: For the third quarter,
The Conference Board's measure of chief executive confidence declined even
more to bottom out at a two-year low. That stat is about as quantifiable as
uncertainty can get. Heck, on the most basic level, it is confidence that moves
the market. Sears Holdings (NASDAQ: SHLD ) saw a 30% decline in the stock this
week because store closings made people doubt the long-term hopes of the
company. When stocks go up, it's when the reverse is true that investors are
secure in the company's future. In finance, confidence is key right now. So
what can we do in a world like this? After all, it's hard to see how one
American can swim against the dark tide of uncertainty that seems to be sweeping
in from all corners. Its simple. Don't let your fears and doubts cripple you
in the year ahead. Have confidence in your own financial endeavors in 2012, even
if you're scared. If you want to start a business, start a business. Who cares
if everyone tells you that "this isn't the environment for a start-up." Is
it ever really a good time to take out a second mortgage, forgo
corporate-sponsored health insurance and work 60-hour weeks because there's
nobody else to help? True entrepreneurs are risk-takers by nature. If you want
to spend money, spend money. I can't tell you how many people have told me
that it was a "bad idea" to take a vacation even if they had the money and
time this year. Seriously? Someone please shoot me if I ever decide it's a bad
idea to play on the beach with my daughters and a good idea to sit in a cubicle
for eight hours. If you want to quit your job, quit your job. Numerous studies
show that employee dissatisfaction is at an all-time low largely because people
think they don't have options. Everyone has their breaking point, so make sure
you reach that breaking point with your employer before it starts affecting your
personal relationships and overall happiness. All this is easier said than done,
I know. But if you don't believe that ultimately things are going to be OK or
that there are options … then frankly, whats the point? Sure, there is the
possibility of chaos in Europe and a "hard landing" in China. There is
political and economic bedlam at home and abroad. If you want to live your life
based on doomsday scenarios, go build a bunker with canned goods and gold
bullion instead of reading this blog post. Yes, we have big problems both
macroeconomically and microeconomically in our personal household budgets. But
unless we have the confidence and courage to face these issues and get on with
our lives, we are doomed to the status quo. So if you're looking for a New
Year's resolution, buck up and sing along with me and Julie: with each step I
am more certain Everything will turn out fine I have confidence the world can
all be mine Theyll have to agree I have confidence in me. Here's to 2012. Jeff
Reeves is editor of InvestorPlace.com. Write him at jreeves@investorplace.com .
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