From SCORE Richmond by Doug Carleton:
A few of you may have had to take Economics 101 in college. A few of you might have even been able to stay awake for the whole class. When the good times are rolling it doesn’t seem to be a real big deal to catch a couple of winks. Don’t’ worry, the good times are still going to be rolling when you wake up. Supply and demand – Economics 101 at its most basic. There is lots of demand because we have money in our pockets, and lots of supply to fill that demand. Business is good. The fat lady hasn’t even gotten to the theater to sing yet.
The stock market just keeps going up, setting new records. Jobs are plentiful, so much in some cases that there aren’t enough people to fill them putting a damper on opportunities to continue to grow. In terms of unfulfilled demand, just look at the long-haul trucking industry. I have seen figures as high as 50,000 jobs going begging in that industry alone. Wages are continuing to be forced up to attract new drivers. But the shortages still exist. House prices, the major source of most people’s personal wealth are high. Consumer sentiment is high. The Small Business Optimism Index continues to set new records.
And just to keep the party going a little longer, interest rates are probably not going to keep going up as it appeared just a few months ago but instead may be dropping slightly, offering a longer window for small businesses to borrow at very favorable rates if funds are needed to grow their businesses or purchase big ticket items such as real estate.
“We have six exits from our aircraft…. In case of a sudden decrease in cabin pressure oxygen masks will drop down from the overhead bin. Place the mask….” It may be time to at least pull out the seat card in front of you to familiarize yourself with how to get out of this plane that just keeps flying higher and higher.