It appears that September will fade into memory as another month of market volatility filled with uncertainty about the condition of the global economy. So what else is new? We should all be used to this by now. As for me, I have accepted that until the market is convinced that policy makers have a workable solution for the European debt crisis and the consumer feels confident enough to spend money, this is our lot – market malaise.
Hey, enough of that! It is Friday, and for most everyone, this means a break from the reality of trying to make ends meet. My suggestion is to throw off the cloak of doom, grab a loved one or two, or three, or however many, and go out to a movie, or dinner, or miniature golf, or to whatever tickles your fancy. Simply, go have some fun. You deserve it, I am sure …
Arguments abound on both sides of the market/economic condition. You know where I stand – I look to the bright side. Yet, no matter what I think or say, or anyone thinks or says, a future exists and none of us knows what that is, and that keeps it interesting, I guess.
One of the things I find interesting in the economic picture are the varied and mixed elements, the ones analyzed and pointed to as indicators of what is to come. The analysis is similar to the bag of letters in a Scrabble game. You reach in, grab some letters, and then make a word. Everyone draws from the same bag but the letters each gets make different words. Some form the word oil, others PMI, others China, and still others spell out unemployment (lots of points for this one). Given this, avoiding “head muddle” is a priority. One way to do this is to keep it simple, find something anecdotal that speaks to reality, yet does not overwhelm. Well, this morning, I found just the thing. It comes in two parts, and the first is this …
Starbucks was hit hard by the U.S. housing crisis that dragged the economy into recession. It shuttered nearly 1,000 stores around the world and slashed costs in a painful, but successful restructuring.
I remember this well. I rode my investment in Starbucks from $28 to seven. Today it trades around $38. There is a reason for this lofty rise. It is the second part of my anecdotal clarifier …
Starbucks is having its best year and our business remains strong,” Howard Schultz said in a telephone interview.
People around the world are spending money on an expensive cup of coffee. In 2008, when the sky was truly falling, people stopped buying that expensive cup of coffee from Starbucks. In 2011, when many are screaming the sky is falling, people are once again buying that expensive cup of coffee, and they are doing it in droves. Times may be tough, uncertainty may be the mindset, and fear may be keeping the money flow in check, but one thing is certain – things today are not as bad as they were in 2008, if people buying expensive cups of coffee is any indicator. Yes, this simple thing makes me wonder about predictions like the one below …
Weakness in leading economic indicators has become so pervasive the Economic Cycle Research Institute now predicts a new recession is unavoidable.
Trade in the day – Invest in your life…
