The ebb and flow of business
September 3, 2022
Anybody who has been in business for any length of time recognizes the ebb and flow of business. The best analogy I know is a sports analogy by Michael Jordon, some days the basket is like a peach bushel you can't miss and some days you couldn't hit water if you fell out of a boat. We all have those cycles, right now with the changes in the economy many businesses are unsure what to do!
It remains to be seen if any of the actions taken by the government will work to bring back runaway inflation and stabilize the economy. Many economists are concerned about the Feds raising rates too much or too little in their remaining three meetings this year. What is the correct balance? Should they increase interest rates by three basis points two or three more times, or gamble on the economy being stronger and inflation starting to go down when inventories empty a little? What's the key?
Some economists are saying the stock market must tank in order to bring recession down along with the unemployment rate going up. What does this mean for those of us looking at a shorter time period before retirement, do we sell stocks, do we become a lot more conservative? What about the young employee who is contemplating a move, does he wait to see what the economy brings, or does he take a gamble of being possibly laid off? There is much uncertainty in the economy, and everybody has an opinion.
So, what do we do, what is the answer? I for one don't know. The tea leaves seem to be changing almost weekly as news on the world and national front changes. One thing I do know is that businesses must do the things that made them successful during the good times. Such as customer service: having a qualified and helpful and knowledgeable staff. Trying their best to offer products and services, even though they themselves have a hard time obtaining the goods they are trying to market to their customers.
We must pull together as a community working with our clients and doing everything we can to help them. With us all pulling together we'll make it through what amounts to be a strange new world.
Marty Pay has been our local Farmers Agent for over 32 years. He also teaches Finance, Marketing at a local University. He and his great staff can be found at 212 W. F St. (661) 822-3737.