While a recession is no laughing matter, we couldn't help but be amused over a recent Wall Street Journal article. The article was considering the question that if a recession does hit, will it be a hard one?

Here's the part that gave us a good belly-laugh.

The WSJ interviewed Robert Gordon, an economist at Northwestern University. Mr. Gordon acknowledged that he thinks a recession is coming (join the club!), but goes on to say that "energy is not as important a part of the consumer budget as it was in the 70s- nor is food..."

Come again?!

We might have given Mr. Gordon the benefit of being mis-quoted, but the sentence was framed by quotation marks, denoting a direct quote.

How can anyone say that food and energy isn't as important to us today as it was 30 years ago?

No wonder so many people want a little Dolan Straight Talk when it comes to their money!

Here's the Truth

So far, the first decade of the new millennium has produced the worst performance of stocks since the Great Depression. For the market to advance to the level of the lackluster gains of the 1970s, the S&P 500 will have to surge 54% by 2010. We don't believe that's going to happen.

We've been saying for some time that the U.S. economy is in a recession. The "official" definition is two straight quarters of a shrinking economy, but we know people are hurting, which is definition enough for us. Even Warren Buffet, the most successful investor on the planet, believes we're in a recession that will linger several more months.

But, even if we are dead wrong, our advice to you wouldn't change. We believe that, especially for the sake of your retirement accounts and your investment accounts, there generally isn't enough potential reward right now to be invested in most stocks and equity mutual funds.

To paraphrase the old philosopher Will Rogers ... we aren't worried about the return ON our investments, we're worried about the return OF our investments!

Complicating the current tug-of-war between "YES recession" and "NO recession," we have to add the "X" factor of a presidential election year. Until a clear-cut winner emerges, the market will continue to be too volatile no matter how the economy fares. (The market hates uncertainty.)

We'll continue to watch everything carefully. If the economy strengthens between now and the election, which we don't expect at this time, we'll be able to see where the "professional" money is going and have plenty of opportunity to get back into stocks for a profit.

In the meantime, let the professionals buy and sell stocks because they must. They are paid to do so, even if it isn't always in your best interest.

For the rest of us, here are the smartest money moves you can make right now to help you survive and prosper during this recession.

Page 1 2 Next »