John: Spanked, whipped, or plain old beaten to a pulp, it is turning out not to be fun.
While it is true that people threw free capital mainly at new economy companies, those companies went out and hired millions of people who bought cars and houses and stimulated demand for old economy products and services, inducing expansion there too. How bad it will be for any given company depends on the competition in its industry, how fixed its cost structure is, and how solid its balance sheet is, versus its competitors. XRX is fairly old economy, in that it makes and sells the same physical things it was making forty years ago, but it could be a goner despite that.
So far everything is unfolding more or less how I expected it, except I was a few years too early. Oh well. Maybe if I live to over 100, by which time all the people who got wiped out in this collapse will have been elbowed aside by a younger generation, we'll likely have another bubble. I'll try to time that one better.
It is a shame SI has so few posts these days. I have gone weeks without checking it, or I would have chimed in earlier on some of these posts. Last December I tried to start a new thread here entitled "Stocks that would benefit from a recession" and I gave one example, but no one else posted. Subject 50354
The stock I mentioned, RMCI, the leading outplacement consulting company, has more or less doubled since then. It still has a good ways to go, I think, given the layoffs in the news. I've got some other ideas in that category, if anyone else would show up there and take an interest. |
