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alstry (36.00)

DEflation Salvation

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February 13, 2009 – Comments (3)

Commodity prices crashing....wages imploding.....businesses shutting down......jobs being slashed ... how do you survive this cycle???.......simple....get to cash and invest in those companies with relatively inelastic demand where costs are falling faster than prices......

It ain't that hard folks unless you are a nut job like Alstry and like to short the market.......

If you thought that was the practice of law was quite "immune"....you are terribly mistaken.....

From CalculatedRisk:

[A] huge number of law firms laid off attorneys today. This is an unprecedented bloodbath. DLA Piper laid off 140 people in the UK on Tuesday and today cut another 80 lawyers and 100 staff in the US, Holland & Knight laid off 243, including 70 lawyers, Epstein Becker lays off 23 attorneys and 30 staff, Bryan Cave cut 58 attorneys and 76 staffers, Luce Forward laid off 27 attorneys on Monday and today cancelled their entire 2009 summer program, Faegre & Benson cuts 29 attorneys, Cadwalader laid off 3 attorneys in london, a small count but Cad is one of the big names, Cozen O'Connor laid off 55 secretaries and 6 paralegals, all in all an incredible day.

When it is hitting the BIG firms....you know its really bad...it NEVER hits BIG firms....I guess we can't say NEVER no more now can we????

A job at Toyata is safe......we I guess we can't say that now either......

Anyone in the shipping business knows that freight demand has fallen off a cliff in the last six weeks.

But never fear....Alstry is here with a constructive article from MarketWatch:

The combination of credit-crunch deflation and recession is forcing companies to conserve cash by firing workers and slashing capital spending," said investment strategist Ed Yardeni. "That should work for one company, but when they all do it, it just exacerbates the situation by cutting demand all over again."

Many investors believe that a lengthy bout of deflation is unlikely. But if consumer prices do indeed fall for a long time, the result is likely to be a disaster for much of the stock market, investment professionals say. Investors could minimize their losses in stocks -- and maybe even capitalize a little on the situation -- by paring their portfolios of the most vulnerable assets while steering toward sectors that are more resilient to a deflation wave.Companies that may suffer less include those with costs that fall more than the price of their products, such as Dean Foods, and firms that help consumers save money, like Wal-Mart Stores and McDonald's Corp.

You see it is not all negative out there.....there is salvation in Deflation Nation...at least according to MarketWatch......

 

3 Comments – Post Your Own

#1) On February 13, 2009 at 7:26 AM, symonds88 (< 20) wrote:

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#2) On February 13, 2009 at 8:21 AM, alstry (36.00) wrote:

Deflating profits.......just deflation EVERYWHERE

PepsiCo's fourth-quarter profit falls 43%

Abercrombie & Fitch profit tumbles as sales drop

Wyndham swings to large loss on goodwill charge

Nabor Industries sees $400 million charge

 

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#3) On February 13, 2009 at 9:17 AM, givmeabreak (28.54) wrote:

16And he told them this parable: "The ground of a certain rich man produced a good crop. 17He thought to himself, 'What shall I do? I have no place to store my crops.'

 18"Then he said, 'This is what I'll do. I will tear down my barns and build bigger ones, and there I will store all my grain and my goods. 19And I'll say to myself, "You have plenty of good things laid up for many years. Take life easy; eat, drink and be merry." '

 20"But God said to him, 'You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?'

 21"This is how it will be with anyone who stores up things for himself but is not rich toward God."

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