Hi all,
Well the stock market is up almost 500 points today and everyone is euphoric. New employment numbers are up, people are hiring! Maybe I’m just a curmudgeon but hiring is up for the Christmas selling season. Don’t be surprised in January when we see a jump in the unemployment numbers.
We are still a long way from being out of trouble. Europe has some really big problems and, lest you think that’s there and I’m here, remember that a lot of people here work for companies who make a lot of their money there. IBM, GE, Corning, even Wal-Mart and many others. Big global players stand to get hurt if Europe goes back into recession. And that will domino over to the USA. Even China senses the potential and has reversed itself and lowered interest rates to stimulate domestic activity.
Housing is still in the dumpster. Foreclosures are going to exert downward pressure on prices for some time yet to come. Maybe a couple years, maybe longer. I’ve long said that housing is the one things Americans always judged as their nest egg. Once that is gone or at least made questionable, they will no longer feel safe taking on debt and spending to buy things they don’t need UNLESS it is a real deal. Retail sales are up this year but the amount and depth of the discounting to drive sales has squeezed profit margins hard.
As they used to say in the military, it is time to be ready, but keep your powder dry. There will be some tough weather ahead before this storm is over.
If you need help keeping on top of your business expenses and finding inexpensive ways to keep key employees happy, call us. We’re happy to work with small business owners to help them survive and grow in these tough times.
North Brunswick Financial Alliance LLC - 910-632-4944
One Stop for ALL your business services.
