Investment News – More and more corporations announcing corporate profits return is good news and one sure-fire indication that recovery is settling in.
Obviously there are still many risks to overcome, but each new announcement of profits moves us ever closer towards the next boom.
If you remember, when we hit the downturn in 2007, corporations immediately made cutbacks in spending, decreased inventory levels, stopped hiring staff and stopped investing in “expansion activities”. As the whole economy went into survival mode revenues dropped and profits disappeared.
This will always be the way but likewise, the good businesses will always ride through the lean times, adapt to the new business environment that emerges and return to profit. Despite what the doomsayers are forecasting they recommence their hiring programs, slowly at first but then with more vigour.
Little by little, as more and more companies announce corporate profits return, the likelihood of a further or deeper downturn becomes more and more slim.
This is the stage of the cycle we are at right now. Watch the signs: more and more corporations will be announcing profits, reinstating dividends and hiring. These are all HUGELY positive statements about their future expectations.
What does this mean to you? Well obviously – now's the time to get started with building your property portfolio – with investment news turning increasingly positive a recoverary is more likely. Right at the moment it's still getting its footing, and no doubt we'll be back soon into business as usual. So call the team on +44 (0)207 923 6100 or www.ezytrac.co.uk and we can help you plot your strategy for the next five years as corporate profits return!
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