Goldman Sachs said that it believed that the S&P 500 would enjoy its best second-half rally since 1982, and boosted its forecast for the index, predicting a 15 per cent jump from its closing level 919.32 on June 30, to 1,060 on December 31. If you believe in history, the market is usually a leading indicator of the economy, which bodes well for 2010's first half.
So, if you believe Goldman's prediction and the lessons of history, the question you have to ask yourself is: What will you do in the second half to prepare for a resurgent economy that may be in full bloom by year end? And to take that a step further, what will you do this week to prepare for the second half, when evidence of the resurgent economy will become more and more evident to your customers and to your competitors?
Some thoughts for your consideration:
1. Does your website need some updating? Tweaking your content or rearranging some material or inserting a new offer for folks willing to share their contact information with you could open up a new list of prospects for your products or services. Even if you don't do the grand redesign you have in your head until next year.
2. Do you have some key staff openings that could be filled in the next couple months with really good people who may be displaced at the moment by the economic reactions of former employers, and won't be available for long once the turnaround begins to register in employers' minds. Remember, the best people will get taken long before the overall employment stats begin to improve. After that, you get the pick of what's left.
3. Do you know which of your products or services is providing the best margins for you after all your costs of providing them? This is a great opportunity to make choices that could cut your costs AND raise your margins all at the same time. What could be bad about that?
As always, I welcome your thoughts and comments.