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alstry (36.24)

Now the Insurance Companies

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January 05, 2009 – Comments (3)

As fewer and fewer people are able to afford insurance, and insurance comapnies suffer material  investment losses....expect dramatic contraction with insurance companies.........

Cigna to cut 1,100 jobs, or 4% of workforce, by mid-year

 

Remember, if the sole bread winner loses his/her job, depending on the number of dependants, more than that individual is affected by the job loss.  Then if the spouse is forced to start looking for a job to compensate for the loss of family income, than one job loss creates two unemployed people.

There is little doubt that we will be experiencing at least 30% unemployment in the very near future.

I have a friend who owns a successful retail store in a very affluent area in Washington D.C.  He has been in business over 20 years with a very strong reputation in his market.  Today, we spoke, and by approximately 5:00 PM today, more than a few retailers in his mall had zero sales for the day.  ZERO!!!!!!!!!

Alstrynomics focus on boots on the ground data.....and let me tell you....these boots are walking all around America collecting data everyday.  I am getting distressing data  from insurance salespeople as well.

By the way, your personal experiences are welcome....after all, CAPs is about investors helping investors.  If you work in a retail store or restaurant.....please share your experience.

 

3 Comments – Post Your Own

#1) On January 05, 2009 at 6:16 PM, kdakota630 (29.78) wrote:

I've owned a retail sports supplement store in Ontario, Canada for over 7 years, and largely my sales are pretty consistent at this point.  I know what months are going to be busy and what months aren't as the business is fairly cyclical.

Anyway...

I noticed a significant drop-off in October this year, which I attribute to people getting nervous about the stock market and a little more afraid to spend money.  November wasn't as busy as last year, but busier than the year before.

December is typically one of my slower months, and this December was no exception.  However... this was the busiest December I've ever had, slightly outpacing last year.  Except for today, January is also off to a pretty good early start.

Granted, mine is not a typical retail business as December is usually slow where everyone else is usually busier, and January is good for me as people make New Year's resolutions to get into shape which is obviously to my benefit.  

Hope someone found this info worthwhile.

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#2) On January 05, 2009 at 6:36 PM, alstry (36.24) wrote:

Thanks for the input.

Clearly, Ontario is probably a little stronger than much of the US.....plus between Hockey and New Years resolutions.....its good to see things still moving along.

Its amazing how parents won't bling an eye spending a few hundred dollars on a composite stick and some of us struggled to spend $15 on a wooden stick not too long ago.

We will get a better perspective about Sporting Goods in general when Dicks and The Sports Authority weigh in......

Are you hearing a similar story from your distributors.....or do you sharpen skates better than anyone around you?????

Thanks for the input.

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#3) On January 05, 2009 at 6:49 PM, kdakota630 (29.78) wrote:

I should've explained a little better... I'm in the sports nutrition business rather than sporting goods.

You're right about Ontario being strong financially that a lot of the U.S. which is why I wasn't too sure about how relevant my experience would be.

As for distributors, the impression I'm getting is that I seem to be holding up better than average.  Basically, even though the economy seems to be slowing, my sales have remained pretty consistent.

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