Oh, sure. The stock market dropped again yesterday. But as mentioned, the 60 Second Marketer and many of our followers are refusing to participate in the recession. It’s our belief that, while times are clearly very difficult, there are glimmers of hope and, as such, we’re positioning our companies for success now and in the future.
So, why do things look so bad right now? It’s because the government reports on information that’s several months old. Remember last year when the government told us we were in a recession? Our collective response was, “Where have you been? You’re just catching on to that?”
Here’s a scenario that explains the lag time: Large Corporation A realizes it needs to cut staff in month 1; it plans the cuts in month 2; it executes the cuts in month 3; the government processes the data in month 4; the government reports on the data in month 5.
So, the government reports data that’s many months old, and the stock market responds with triple digit drops. But running a business based on 5-month-old information is like trying to drive on a highway by looking in the rear view mirror.
Yes, things are tough. But there’s some stuff you can be encouraged by:
- Interest rates are at historic lows and housing has become affordable. Real estate agents we know in Atlanta and Washington, D.C. are busier than they’ve been in years. Why? Because housing is now at its most affordable level since 1971.
- A source on National Public Radio predicted that the S&P 500 may rise as much as 20% towards the end of the year. Why? Because as soon as investors acknowledge we’re at the bottom of the cycle, they’ll quickly start buying stocks that are steals.
- Energy prices have dropped. Oil is 76% lower today than it was last summer. Cheaper energy means that people who were putting money into their gas tanks are now able to put money into restaurants, vacations, new tires and home improvements.
- Low inventories equate to increased production in the near future. In December, inventories declined at twice the rate that was anticipated. When the economy starts to rebound and demand begins to rise, companies will need to boost production to meet demand. This means there will be a need for more employees, reducing the strain on the government’s unemployment program.
- Walmart posted a quarterly profit that beat Wall Street forecasts. The world’s largest retailer saw sales rise 6% in the quarter as it attracted more shoppers trying to save money in the recession.Â Net sales rose 1.7% to $108 billion.
Again, we’re not in denial here. Times are definitely tough. But you have two choices — be part of the team that’s wallowing in the negative news stories, or be part of the team that’s figuring out how to be poised for growth in theÂ future.
Here’s to healthy growth in the future.
P.S. Would you like to be added to our growing list of companies that are refusing to participate in the recession? Then leave us a comment and we’ll add you to the list.
Here’s the list so far:
- Todd Miechiels + Partners
- Piano Expectations
- Response Mine Interactive
- 60 Second Online University
- 60 Second Marketer
- BKV Interactive and Direct Response
- A School Bell Rings