CLARKONOMICS: Clark recently participated in a joint radio event with 2 political talk show hosts who denied there's a recession when asked by a moderator. For his part, Clark believes we're in the midst of a consumer recession.

The general outlook about the country is the lowest it's been since the 1970s. Only a little more than 10% of us think that the economy is OK.

Yet unemployment is still low compared to some of the rougher times during the modern era. For example, the rate of inflation is not anywhere close to where it was between 1979 and 1982.

We emerged out of that doom and gloom to have some of the best economic decades in our country's history. So why the rampant pessimism now?

Clark believes there are 3 reasons: The tight housing market; the mushrooming level of debt we're carrying; and the fact that more of us own stock in companies because of 401(k) plans. The latter means that we feel the sluggishness in the stock market in a personal way.

But consider this: If your home value declines temporarily, it only matters if you're looking to sell. Likewise, your 401(k) moves with the rhythms of the market. So if you keep contributing, you actually benefit by picking up more shares when the costs are low.

Pessimists allege that America can't continue to be an economic power. Clark disagrees. We have a culture that lends itself to entrepreneurship. In fact, an economic slump is a great time to start a business -- though it may seem counterintuitive. But you can hire workers at lower wages and get space cheaper right now.

One final thought: Capitalism is booming overseas, so your investments should be diversified with anywhere from 20% to 40% in overseas stock. Don't have a "home bias."