What’s the Stock Market telling us Now?
What is the stock market telling us today? If you are a seasoned watcher of the stock market and have watched it go up and down during several decades you may know the signal. So what is the signal you may ask? The stock market is a good forecaster of the direction of the economy.
Since the 1960’s when I was first taught a few things about the stock market, there has been rule of thumb in play. The rule is:
“The stock market is always ahead of the economic numbers by six months.”
So, what is the stock market telling us now? If the six month rule is correct, then we will see so major improvement in the economy during the end of the third quarter and definitely the fourth quarter. So start your planning right now and get ready for take off!
This means it is time to get ready for business to pick up. So there are four things to focus upon during the current quarter:
- Training and Development – Get your people ready for the upswing in business. Use this down time to pull people out of line positions and develop their skills and knowledge. Because once the up turn begins there will be no available time for this.
- Hiring and Selection – Get your hiring and selection process working overtime. There are very talented people in the job market. So now is the time to find them and begin the upgrading of your human assets. Talented people will be harder to find once every knows the economy is back AND it will cost you more to employ them when more bidders are looking for experienced and proven talent. Keep your personnel expenses lower by starting the process before everyone else does.
- Upgrade your Systems – Now is the time to get new systems and technology into your organizations. Currently discounts are strong for new products so the initial savings are significant. Then the longer term savings due to productivity increases will kick in and you will be seen as a genius.
- Review your Processes – Closely tried to the systems is the quality of your current work processes and work flow processes. Now is the time to check out the effectiveness of the processes. Are there any steps that could be removed to shorten the process cycle? Are their redundancies that could be eliminated, thus saving more money and improving work flows? Test the processes now because productivity will be very important as the economy upturns. Profits will be higher.
Take note of these ideas and launch into improvement today because soon you will have no additional time for people to respond to these changes. Growth is coming – Will You Be Ready?
We have been assisting our clients in all four areas over the past 20 years and we can assist you also. Contact us if you want to discuss how to implement any of the four projects in your organization. Our phone number is 901-757-4434 – call today and start while them is time to implement the change and improvement projects.
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