11 Mar 2009

The Strong Survive – Getting Stronger

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Circuit City finally closed its doors on its 600 stores last week, eliminating another 34,000 jobs in the economy. Best Buy is still in business, a little leaner after some layoffs and early retirement buyouts. They will probably emerge from this recession a stronger company, and no doubt with less competition. GM and Chrysler needed bailout loans to stay alive in recent months, while Ford has renegotiated its health fund payments and labor contracts with union – without any government interference or financial support. They will probably emerge as the strongest U.S. auto company when the recession ends.

The credit crisis and resulting recession has forced many companies out of business, or put them on government life support. Yet it has provided many with the opportunity to review their operations, improve their business model, and emerge stronger than ever before. A common theme among the mutual fund managers we talk to is that they are using this opportunity to “upgrade” their portfolios with stronger, higher quality stocks. We are constantly reviewing our fund selections to improve the investment selections in your portfolio, and we are always looking for ways to improve our process.

Take advantage of this recession. The economy is forcing many of us to personally “strengthen” our financial situations. Sometimes this means cutting back on spending, adding other sources of income, or other changes in lifestyle. Maybe it’s delaying that car purchase, home remodel, or other small sacrifice, or just making sure you have an adequate “comfort cushion”. Or maybe it’s taking more time for personal relationships or helping a family member that has been affected by a job loss or related situations. Don’t let the recession beat you – Get Stronger!

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About the Author
Bob Klefsaas


President, CFP, AIF, Founder and President of All Star Financial, Bob began his career in money management in 1983... Read Full Bio >

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