Thursday, September 25, 2008

Business Management and Stock Investment in a Bush Economy

The Laws of a Jungle serve the mighty. Might is Right and Cash is King. The Ruler has control over shared resources, and can even conjure virtual ones. The Bush bailout is selective, and by all accounts, deliberately so. Click to another page if you are a part of Wall Street. Stay on this page if you have no connections with the Fed.

Small, independent, and ignored eco-systems are part of any jungle. Large carnivores are most prominent in their naked lust, but there are many small critters that carry on business as usual. The Regional Banks industry is a top example of this phenomenon. Many unsung heroes of the blighted Financial Sector in the United States. Allies of this once-great nation may hang on to every word that Washington utters, but the real action is at Ground Zero in the hinterland.

We have similar situations in many industries and countries as well. A macro part of the economy languishes in mis-management, while individual stocks continue to perform on par. The reverse may also be true. It appears that Freakanomics works for the stock market just as it does to understand sumo wrestling and the profits from growing opium in Afghanistan.

The good news is that you can continue to rake in the moolah even as politicians, bureaucrats, and their ilk continue to struggle with the monster of unbridled and corrupt capitalism. It is simply a matter of diligent Business Management. Get back to the basics of evaluating the worth of an enterprise. Craft strategies based on facts not dromology.

Write to me for effective ways to shore up your business in trying times, or to build a valuable stock portfolio. You can also post below.

 

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