TNNWC ENTREPRENEURIAL PUBLICATIONS

TNNWC Publications And Informational Products Division publishes The National Networker (TNNWC) Weekly Newsletter and The BLUE TUESDAY Report especially for entrepreneurs and early-stage venturers; free weekly subscriptions to these informative publications are available online to all entrepreneurial Members of TNNWC.

Membership in TNNWC is free (it's automatic for any subscriber to any TNNWC Publication) and available at our website. When you arrive there, just click on any of the JOIN US or BECOME a MEMBER buttons or links.

Sunday, June 05, 2011

Dow/Gold Ratio: How To Compete In An Economic Downturn | STRATEGIC BUSINESS AND MARKET TRENDS

RD Watkins
Strategic Business and Market Trends with RD Watkins


The US Dollar based Dow Jones is like a child’s top in its final vacillations it gets ready to tumble. The affect of the Federal Reserve Policies on the true value of the US Dollar and the US stock market can be clearly seen in the Dow/Gold ratio. The question is, if you are an entrepreneur interested in creating value in the US markets or your businesses valued in the USD and wanting to be paid for that value, what strategy can be employed? The answer is going to be hard to generalize but, I believe it is incumbent on all of us to ask the question and apply some thought to it before our ability and opportunity to execute the strategy vanishes.
Chart courtesy of http://sharelynx.com/

Let’s go backward in time to see what happened in each of the swing/vacillation instances of the past and what affects it had on entrepreneurs and emerging enterprises of the past. The Fed policy first exhibited this wobbling top-like effect on the Dow/gold ratio as it was coming out of the depression. Gold values skyrocketed as scared money ran towards stable valuation and away from speculation and the funding of risk and the businesses in the growth cycle. This shrank the power of American industry and the result was an anemic rate of job growth and rising unemployment. The catalyst for eventually returning to a state of growth was WWII and the demands placed on industry to deliver the tools of war funded by government purchases.

The next occurrence of a burst bubble is the 1970s with the oil crisis as its catalyst. Notice that war again might have been construed as the response (called a remedy by politicians) which should have brought the growth machine back online. The secondary response was the raising of interest rates, via Fed policy to what historically were astronomical heights. This forced stabilization and when co-joined with a more business friendly economic and regulatory policy resulted in relatively steady growth until reaching a peak in the 2000's.

Our latest wobbly response from the Fed has been dropping the interest rates, dollar printing (called devaluation or monetization) and denial of the inflation that each entrepreneur feels when he must raise prices to his end costumer or cut salaries and personnel on the production or R&D side of his fiscal house.

The Solution is Entrepreneurship & Relationships:

The solution is always Entrepreneurship; the encouragement of prudent risk taking and investment in people, things and products needed and sought after during these downswings. Read the history of your industry, extrapolate and plan based on strategies that have working to re-power the economic engine in the past and be enthusiastic and motivated in all you do in and for your business. These will be the key differentiators in downswings.

All businesses that drop to their knees and succumb to competing on price alone are destined for a hard road ahead. Those that are attentive to their customers and clients needs, understanding their plight and give hope rather than retreat into their shells will become the guiding beacons and positive harbingers of the growth soon to come. You will magnetize yourself and your business if you have an understanding that all stable businesses are built on relationships and the intangible values inherent in what boils down to commerce by exchange of value. If that value is represented in Dow stocks, Gold, Dollars or chicken eggs it makes no difference. Your customers will seek you out if you can give them the dependability and stability their lives are lacking in addition to the transaction value. Always concentrate of the needs of people and you will do well in your business.
Enhanced by Zemanta

RD Watkins brings value and builds productive and collaborative relationships by "Applying Common Sense Project Management Principles in a Virtual World". He fills the role of Senior Project Manager, is a PMI certified PMP® (Project Management Professional) and holds CompTIA IT Project+™ credentials. You can connect with RD to discuss his capabilities in cost effectively managing and enhancing productive consensus on your virtual projects through his LinkedIn.com profile at http://linkedin.com/in/rdwatkins or contact him via email at rd@rdwatkins.com.

For more information, please visit RD's TNNWC Bio.


Powered By TNNWC Group
For complete tactical and strategic business planning, marketing, media, lead-generation, technological and capital resources, scalable solutions and tools to support every entrepreneurial start-up, young enterprise, small- to medium-sized business and emerging high-growth company, talk to The National Networker Companies™/ TNNWC Group, LLC.

We are a collaborative entrepreneurial, creative organization offering you hands-on, personalized assistance in every aspect of achieving your monetization, profitability and financial sustainability objectives, domestically and globally.

We don’t just coach you or offer you pre-packaged, push-button solutions – we listen to you, analyze your exact needs, and work within your budget to: 1) create your tool kit and 2) work as your partner to implement your plan by supporting you in the most efficient and productive use of every tool.

Visit our website, which is located at http://www.TNNWC.com .

To receive our newsletters, publications, information bulletins and alerts, simply join us as a Member. Membership is free and the benefits are unequalled anywhere.

Just go to our home page, and click on the “JOIN US” button.



Membership is FREE!The NATIONAL NETWORKER™The BLUE TUESDAY Report™The NATIONAL NEWSPICKER™LEFT, RIGHT and CENTER™Customer Experience PracticeSpecialized Financing & Credit EnhancementEmerging Enterprise Venture Capital Program™Merchant Payment Processing SolutionsNews Releases, Publicity and Public RelationsBUZZWORKS™ - Branding and Social Media DominationMarket Research, Surveys and PollsAssessment ToolsBLOGWORKS™ - Expand Your Search Engine Presence, Positioning and CredibilityAdvertise with Us!Selected Service ProvidersInternational Connections Service - Go GlobalIntelligence and Information OperationsInstant Mobile Communications & ApplicationsCooperative Business Community
Visit Our WEBSITE for more!http://www.TheNationalNetworker.com
Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC

Forward/Share This Article With Colleagues And Social Media:
Share/Save/Bookmark

No comments:

Blog Archive

BNI News Feed

The Emergence of The Relationship Economy

The Emergence of The Relationship Economy
The Emergence of the Relationship Economy features TNNWC Founder, Adam J. Kovitz as a contributing author and contains some of his early work on The Laws of Relationship Capital. The book is available in hardcopy and e-book formats. With a forward written by Doc Searls (of Cluetrain Manifesto fame), it is considered a "must read" for anyone responsible for the strategic direction of their business. If you would like to purchase your own copy, please click the image above.

Knowledge@Wharton













Site Credits:


Featured in Alltop
ALLTOP Business
News Wire. HOT.
Cool Javascript codes for websites
KeepandShare.com(R)  Fabulous Free Calendars

Create FREE graphics at FlamingText.com