The Writing is On the Wall…Why Aren’t Analysts Reading It?

Is there? Or isn’t there? 

In fact, is there even a there…there?

Okay, this isn’t a Dr. Suess book. Clearly, I am talking about a recession. 

A couple of months ago, I asked you if businesses should start preparing for a recession. In my report back to you titled, “Walks Like a Duck…Quacks Like A Duck…Flies Like a Duck…Recession?” I shared the result of the little (dear reader, you know the caveats) survey we posted. The bottom line, an overwhelming majority of 74% said yes, we better prepare. And, as always, if you haven’t, go back and read the comments…critical. 

And yet, months later, we listen to Target report a disaster, and the pundits and analysts and other useless opiners wring their hands and shake their heads wondering why. 

You, dear readers, could have saved them all the trouble. 

So here we are. Back at GO…dithering instead of doing.

Part of the problem, as my readers know, is that Recessions are not called until they are over. Kind of like being dead and buried and getting a note saying you have expired. 

So, I decided to take another tack. Target, take note—it’s amazing what you can learn just by asking the right questions. 

It was a simple question we asked, as we do. It wasn’t scientific or projectable, but it was hugely insightful and in my opinion, right.

The question was: “Has Inflation Changed Your Spending Habits?” 

Drumroll…65% said yes and 15% said somewhat. Ergo, 80% have taken some action (see Target’s earnings). 

And, as always, the insight is in the comments.

• “It actually didn’t impact my spending habits. It just eradicated them. Nothing more to spend!” —WD
• “Much more chicken. Much less red meat.” —RA
• “A bit…stricter with my spending budget, reducing food takeout and opting to commute instead of taking my car.” —MR
• “I’m quite the minimalist…tracking where every dollar goes on a spreadsheet” —SR
• “Trying to reduce my footprint overall.” —PM
• “Inflation has definitely eaten a lot of my paycheck.” —KS

And, then a few good souls also offered investment and savings advice. 

Bottom line?

Call it what you will. A Recession by any other name still hits people just as hard, and then obviously the places they spent their money (ask Target). 

Here’s your choice…wait ‘til we tell Tales of the Recession when it's over and been declared. Or get with the program…listen to your consumers, users, and buyers, and not the analysts, pundits, useless opiners, or worse…the politicians. 

A Public Service Message to all business who are still wondering: 

Just Listen!

What’s your view?