Monday, February 9, 2009

Recessions have a beginning and an end, Smart Distributors plan for both

There is absolutely no way to predict the exact time and day, but trust me all things must come to an end. Recessions begin (ours began for most of us sometime in October) and they end. The problem for most of us lies in long range planning. Without planning, we are caught off guard. We may find ourselves reacting rather than following a plan. We tend to act like the recession will last forever. I pose a question, what have you done to build a plan for the recovery. It’s all about positioning. What will you do at the first signs of recovery? What can you do to position yourself now?

Recovery May Be Quicker Than Expected Once Turnaround Begins.

The Wall Street Journal(2/9, Lahart) reports, "Last year's credit crisis hit the economy with a surprising jolt, and most economists expect the recession to drag on until at least the end of 2009, with only a meager recovery after that." But "history says they could be surprised by the speed and strength of the recovery -- once the economy shows signs of turning around." Of the "10 largest quarterly drops in final sales over the past 50 years, nine were followed by rebounds the following quarter, with an average gain of 5.4%. The chance of any rebound in the current quarter seems far-fetched after last week's dismal reports on January manufacturing activity, chain-store sales and jobs. Still, if the government's coming stimulus package and bank plan are able to restore a modicum of confidence in the economy, recovery could come surprisingly quickly."

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