Overshooting Pendulum

We all agree that the news media is not doing their job and instead is just feeding on bad news. Which means: Is it as bad as we are told to believe?

Well for a start, let us look at these facts: the national average employment rate is at 93%; it costs today more to build a house than to buy one; the upward saving trend is indicative of people sandbagging. Sooner or later, postponing spending will come to an end and more than 9 out of 10 people will realize that they still have a steady income. You know, that new car they did not purchase and that vacation they did not take is suddenly overdue.

So what do you think will happen to the market? You guessed it! But rapid growth is more challenging than a slowdown. You can always shed inefficient resources and keep your best ones, but it is much harder to hire new resources fast enough to handle an uptick. It is ALREADY a lost game for businesses that are not using this downturn to understand their core competencies, build a strategy plan, and quickly executing on that plan.

I did predict the internet, the real estate and the oil bubbles (sadly, I never wrote about it but my close friends heard me talk about it). Along those same lines, I am predicting the pendulum is overshooting the other way this time, so make sure you clean up your business model and set yourself up for the next round.