Kevin's Corner

 

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A Funny Thing Happened on the Way to The Olympics

As I recall, this “thing” happened after the Super Bowl and while we were looking forward to the Winter Olympics.  “Funny” may be misleading.  We were just innocently chasing off the cold weather blues by immersing ourselves in these Sporting Events when it occurred.  The news had been good prior to the event, as evidenced by a Business Insider Jobs Report.

There were many explanations proposed for the February 2018 stock market correction, including three most likely factors outlined in another article by Business Insider.

  1. Faster business expansion and wage growth will push down profit margins.
  2. Improving economic data will lead central banks around the world to raise interest rates.
  3. Competition for scarce capital will lead to higher interest rates.


The Author concludes that the prevailing economic winds are a result of a combination of all three of these reasons. The most anticipated prediction will be the normalization of interest rates which will affect the way companies choose to finance equipment and invest in expansion.    

While I do not profess to be an economist, this financial atmosphere has a familiar quality about it, with likely outcomes.  We have heard from businesses that they have chosen to use their cash to acquire the capital equipment they needed.  Ironically, it is now more probable that they will finance these assets with leases, loans, and other sources of credit.  

While sports are a great escape from the mundane, there comes a time when outside forces call us back to reality….that of making a living and growing our businesses….or is it growing our businesses so that we can make a living?

In you can catch a break, check out this schedule so you can still catch the women’s figure skating event, the men’s bobsled races and hockey game, as well as the closing ceremonies of the 2018 Winter Olympics.   

It’s the “lease” we can do,

Kevin F. Clune, CLFP

Clune & Company LC