Why a down economy is the time to get aggressive with your business
Posted On January 12, 2023
Does the economy have you worried? Scared of a recession and what it’d mean for your business?
Our guest in the latest episode of “What’s Working with Cam Marston” tells us why we shouldn’t be so anxious – and why a down economy is the perfect time to get aggressive anyway.
Peter Ricchiuti, an economist and professor at Tulane University’s Freeman School of Business, says the Federal Reserve is actually doing a pretty good job of walking the tightrope between lowering inflation and avoiding recession. “There’s a lot of fear out there,” he said, “but you look at the job numbers and they’re terrific.”
Where there’s fear, there’s opportunity. A down economy, or the perception of a down economy, is not the time to pull back on the reins, Ricchiuti said. In fact, he added, that’s actually the time to get aggressive with your business, while your competitors are pulling back:
- Look at improving efficiencies, including possible restructuring. Invest in innovation and technology.
- Be careful about listening to what CEOs are saying. Pay attention to what they’re doing instead.
- Don’t follow the crowd. Most people are hard-wired for pessimism.
“If the majority of the people were right, the majority of the people would be rich,” he said. “And they’re not.”
Thirty years ago, Ricchiuti started Burkenroad Reports, the nation’s first university-sponsored securities analysis program. In April, the program will hold its annual Burkenroad Reports Investment Conference, which is free and open to the public.
The outlook this year? Regardless of what you hear about the economy, gas prices, energy and the stock market, Ricchiuti sees plenty of reason for optimism – especially when you take the long view.
“The long-term projection on the economy and the stock market is up – it always has been up,” he said. “That’s the way capitalism works.”