End of recession creates opportunities for the bold
I can’t find many journalists, politicians, or even bloggers willing to go on record that the recession is over, even though technically it is.
The politically correct thing is to say we have a long, hard path ahead. This will continue to be the case for up to a year. Politicians in power will argue that their policies (whatever they are) are obviously starting to work but more needs to be done. Politicians in opposition and other pundits will point to the lack of improvement in lagging indicators like unemployment and commercial bank lending as signs of the apocalypse and failure of current policy. Both will be wrong.
Emotionally charged events are generally remembered more strongly than emotionally neutral ones (google “emotional memory” for more info). For anyone involved in business, the events of late 2008 were highly emotionally charged. These events make a lasting impression, and it takes quite some time for the emotion to fade. Eventually we remember the emotion without feeling the emotion, but this process usually takes a couple of years.
As a result, most people are still fearful about the economy, caught up in the emotional trauma of a year ago, and taking baby steps until they’re sure the ground is solid. Although there has been a strong move out of cash over the last six months, risk taking is still near its cyclical low.
Now is the time of the cycle when bold moves are rewarded.
What bold moves are you planning today?
