Category: Economy Outlook

Economics, Economy Outlook, Investments, Personal DevelopmentLeave a comment

What in the world is really happening to the stock market? Outlook for 2020

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Numbers numbers numbers. That’s all that matters now. If the S&P closes the year-end holding onto this record performance, it would be the 10th year straight that it experiences a best-annual performance. But, as any normal investor would ask, ‘how in the world can this be happening?”. For one, we have an ongoing yield inversion, a key recession indicator. Then the overnight lending market capital pressure caught the Federal Reserve by surprise, and the result was a capital injection in billions of dollars. And now, negative debt to the tune of $13.5tn washing into the global economy. With such heavy-duty … Continue reading What in the world is really happening to the stock market? Outlook for 2020

Economy Outlook, Information Systems, International Business, Investments, Leadership, Personal Development, Psychology, StrategyLeave a comment

The importance of repositioning the business – see this example about Google

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“When there is a break in the continuity of the external landscape, as there has been in many industries, the know-how of positioning and repositioning becomes even more important. One recent example is the new technologies, particularly the search engines, that are threatening the very foundation of the newspaper business. You can see it for yourself when you stop at the newsstand on the way to work and pick up a copy of, say, the New York Times or the Wall Street Journal. One thing you’ve probably noticed is that these and other newspapers (and magazines) are a lot slimmer … Continue reading The importance of repositioning the business – see this example about Google

Crisis management, Decision Making, Economics, Economy Outlook, Leadership, Personal DevelopmentLeave a comment

A Business’ Performance and Its Environment

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The environment plays a significant part in defining an organisation’s future. A business therefore ignores changes in its “contextual” and “working/task” environments at its own peril, because its performance is inextricably linked to these changes. Business’ contextual environment is often identified by its acronym — PESTEL and comprises of Geo-Political, Economic, Societal, Technological, Environmental (relating to the natural world) and Legal factors. Its working/task environment is characterised by factors such as: accelerating technological discontinuities and disruptions, mutating industry boundaries, morphing customer needs and competitor supply, unrelenting market demand for creativity and innovation, radically reconfiguring value-chains, and the global war for … Continue reading A Business’ Performance and Its Environment

Economics, Economy Outlook, Personal DevelopmentLeave a comment

Here is how we should define growth.

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“Growth can be defined as the sum of spending by government, spending by consumers and investment to build factories or homes, buy computers, and other equipment, and otherwise build up the nation. Investment typically represents a much smaller share of the economy than consumption, often around 20%, but it is the most important indicator of change, because booms and busts in investment typically drive recessions and recoveries. In the US for example, investment is 6 times more volatile than consumption and during the typically recession, it contracts by more than 10% , while consumption doesn’t actually contract, its growth rate … Continue reading Here is how we should define growth.

Crisis management, Economy Outlook, Human Resource Management, Innovation, Leadership, Personal Development, Risk Management, StrategyLeave a comment

Factoring futurity in Decision Making

BusinessLeadershipManagement

The notion of “futurity” resonates strongly with the preceding discussion of “long-fuse, big-bang problems.” Both terms are simpatico because they are both vested in the future, recognising that all managerial decisions have the quality of “happening in the future” to a greater or lesser extent. Apparently, famous American singer and song-writer Neil Diamond understood futurity because he crooned that “we are headed for the future and the future’s now.” These lyrics are remarkably perceptive because as your experience would have shown you, there is no sharp demarcating line between the “short-term,” and the “long-term.” The past doesn’t about on the … Continue reading Factoring futurity in Decision Making

Economics, Economy Outlook, Industry News, Personal DevelopmentLeave a comment

Brain Gain – how some economies have advanced more quickly than others.

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  “For decades, the US has benefited from brain gain, which helped to fuel the entrepreneurial energy of American society. Today, immigrants make 13% of the total US population, but they account for 25% of he new business owners and 30% of the people working in Silicon Valley. Of the top 25% US tech companies in 2013, 60% were founded by 1st or 2nd generation immigrants. Steve Jobs at Apple: 2nd generation from Syria. Sergey Brin at Google: 1st generation from Russia. Larry Ellison at Oracle: 2nd generation from Russia. Jeff Bezos at Amazon: 2nd generation from Cuba. While many … Continue reading Brain Gain – how some economies have advanced more quickly than others.