Batten Down to Hatches

Generally, I am an optimist. I believe that events eventually sort themselves out and patience and prudence win the day. However, I am getting increasingly concerned about our heading into another recession. Not the magnitude of 2008…but a recession nonetheless. At a workshop of 12 financial experts last week I posed the question: ‘How many of you believe we are heading into a recession?’…9 of the 12 raised their hands! The factors that are impacting us are:

Trump’s unnecessary trade war
The dismantling of NAFTA
The impending impeachment of Trump
Brexit and its impact on the EU
We have been in a period of growth for 10 years+
Rising interest rates
Potential geo-political crisis in various ‘hot spots’ around the globe

So…if there is a recession coming…what to do? The answer, quite simply, is to plan for the worst and hope for the best. Securing key accounts, building up cash reserves, managing inventory and structuring for a potential downsizing are all prudent steps to take. I also believe maintaining relationships – with clients with suppliers and with our own people is critical to our managing the storm. Take the time to reach out to each group and solicit their participation and feedback for ways to secure…and enhance…your relationships.

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