What’s the Message for Private Businesses from the Stock Market?

future growth

The news about unemployment is devastating, as are declining revenues across hundreds of industries. Yet the stock market surged on Friday, May 8. I found some valuable insights in the article by Thomas Heath that would be good for the small private business sector to understand.

Heath makes the point that the markets for publicly traded companies are a future indicator, not a look in the rear view mirror. The bad news we’ve already had and that we expect to continue, has been digested and reflected in the drops of the past weeks.

Looking ahead the markets see the following:

Technology is in more demand than ever. While the giants are well known, every company in the tech sector has an opportunity to support both the medical imperatives and the economic ones.

There’s hope on the health front. Rising numbers of confirmed COVID-19 cases and deaths are making headlines, as they should. At the same time, the urgency of the need has propelled laser focus on treatments and prevention. Rivals are becoming partners and labs are bursting with research.

Oil markets are calming down and prices are rising. The economy sees oil prices as benchmark of economic health. The movement towards  a better balance of supply and demand indicates broader changes for for the better.

The economy is flooded with cash and easy credit. Here again, what we as private business owners experience as only a disaster, with the PPP and other programs hardly serving the gaping needs, the markets see as positive signs for the future. The Federal Reserve is launching a program to directly help Main Street businesses that have fallen in the cracks between existing small business programs. Super low interest rates have propelled investors out of bonds into equities in search of returns.

Shanghai Disneyland sold out. Disney is reopening Disneyland in Shanghai next week. All tickets sold out in minutes. The markets see this a sign of better times, even though the park will only admit 30% of its capacity. If Disney opens, other hospitality companies may also do so.

How does this help you?

I know that our privately owned, locally-based services companies can view Heath’s assessment as completely irrelevant to our situation. Yet, I’d encourage all of you to look ahead.

The new normal will become the “normal normal”. After that we’ll think of the pre-COVID-19 decade an passed era just like we think of the 2000s or the 1990s.

You can mourn the old lost ways or you can determine how your company and industry can improve revenue and profit given new needs and wants of your customers and clients.

Trivers Consulting Group is helping private businesses design new strategic plans built on their driving force. One mediator designed, marketed and attracted clients to a new virtual mediation approach. She and her clients are finding that where there’s a will to adapt, there is a way. How are you adapting? Give us a call for our support. 703-801-0345.

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