As to why the recession may be upon us, here are some popular explanations:
They occur with reasonably frequency and it’s now a bit overdue.
Most commodities are valued in U.S. dollars, and its strength is impeding international trade.
Russia’s invasion of Ukraine has exposed global institutional weaknesses.
The Fed has overreacted and done it (again) far too late.
The Covid impact has disrupted normal supply and demand patterns causing businesses to focus on reacting as opposed to following well thought-out game plans.
Our congress and executive branch continue to legislate and regulate with a short-term view that tends to deemphasize long-term value creation.
Ultra-low global interest rates created a vast oversupply of capital anxious to invest in a manner inconsistent with reasonably sustainable results.
Go ahead and pick one or more of the above. Let me know if I have missed an explanation or two. Does the existence of these explanations matter? My answer is regrettably pessimistic. It doesn’t matter because economic impediments happen all the time and are sure to continue.
Therefore, let’s not worry about looking in the rear-view mirror. There is absolutely no profit in that exercise. Instead, let’s focus on how we conduct ourselves now that will leave our businesses in a stronger position when growth opportunities become more apparent. So, I suggest we crank up our vision strengths.
Capital Access Partners exists to help companies arrange their working capital needs in such a manner that supports their short- and long-term planning. And we firmly believe that businesses seeking capital of any kind should pay maximum attention to compatibility with their capital providers. Optimal Pairing™ = Optimal Results.
Comments