| Major market events can have unintended consequences. Is your business prepared?
The drop in oil prices is having an effect beyond the energy sector of the economy. For example, the recycling industry is experiencing a downturn as the cost of some raw materials is becoming competitive again with the processed end-products of many recyclers. Plant closures and layoffs are on the rise; but long term contracts with cities throughout the U.S. impose limits on how businesses can react to market and economic changes. Every crisis presents a business opportunity. In addition to the obvious upside for the travel and auto industries, lower oil prices are also helping to breathe new life into the vinyl record-pressing industry that has been largely idled since the 1980’s. Asterion’s professionals have decades of experience working with businesses that are coping with changes in industry conditions. And if you held onto your vintage albums, we might even have a suggestion or two about where to find a new turntable. Interest rates will rise–when? Have you prepared for the impact? The next likely dates for the announcement of a rise in interest rates are October 27 or December 16, 2015, during the one of the next Federal Open Market Committee meetings. There is still time for your business to take advantage of low rates and plan for the impact a rate increase might bring. The Federal Reserve’s reluctance to trigger a period of economic turmoil may be grounded in the memory of the “Tequila Crisis” of 1994-1995. But there could be an even stronger reason for their recent hesitation. At least one commentator is beginning to wonder not just when but if the Fed can effectively raise interest rates in the current economy. If market volatility is having a negative impact on your business, consult with Asterion’s seasoned advisors. UPDATE: Happy Birthday to You copyright invalid. A ruling on summary judgment motions in the copyright battle, discussed in the August 13 installment of The Thread, was issued September 22, 2015. On the Lighter Side: Words that Make Markets Worse George Carlin joked about the seven words he couldn’t say on TV. Business reporters have 141 to avoid across all media. Spotlight on Distressed Business Services Asterion, Inc. has extensive experience providing consulting services to businesses that are in financial distress.
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September 29, 2015