LOVELAND - There are positive signs emerging in the economy, but the early days of the recovery will hinge on consumer confidence and buying power, according to Gary Schlossberg, senior economist for Wells Fargo.

Schlossberg discussed the current state of the economy at Wells Fargo's Focus 2010 Tuesday at the Embassy Suites in Loveland. While he sees signs of a self-sustaining economy driven largely by consumers, job uncertainty and declining income levels will continue to be a strain.

"The recovery, so far, is moderate, and that's disappointing," he said.

While there is no such thing as a typical recession, on average recoveries take about four years. This one, which is still young, will probably take longer.

"It's still very early in the recovery," Schlossberg said, adding that it is in about the sixth month of a six-year process. He also quieted fears of a double-dip recession.

"The double-dip is like a unicorn," he said. "We always talk about it but rarely see it.

Jeff Savage, senior director of investments, pointed out that uncertainty is hindering personal investments. Exactly a year ago, the stock market hit rock bottom, but in the following 10 months the S&P saw a 70 percent increase in value. Savage pointed out that while that type of increase would typically be seen as an amazing year, there just isn't widespread positive sentiment.

"People just don't care," he said. "That's the psyche we have going on right now."

Inflation fears have many investors focused on short-term, cash buys, which are paying around one-tenth of one percentage point.

"That just bugs us," Savage said.

He recommended looking at longer-term buys, around 18 months. Savage and Schlossberg feel that inflation is at least 12 months away, and Savage pointed out that investors shouldn't rush to cash out in the early days of inflation.

Both experts also felt that Colorado, and Northern Colorado specifically, were well positioned for recovery. The economic decline in the state wasn't as severe as in other areas, and spinoffs from the University of Colorado and Colorado State University promise to breathe new life into the technology industry.

"Longer term, I think this area becomes a growth leader,' Schlossberg said.