The stock markets continue to be on the rise and many market professions expect the bull rally to continue to new heights. At the same time you have an increase in insider and manager selling shares. I would expect the majority of these shares were issued as stock compensation and with stock prices at new highs many want to cash in profits.
As new wealth is created in these transactions you can expect to see mortgages paid off as retirement approaches and for life styles to increase. People tend to spend more money when they do not have a mortgage and when they have a lot more money. This new round of spending should continue to fuel small business revenues; although it may take 12 months (perhaps more) to trickle down.
Additionally, as corporate managers come into immense wealth they may begin to exit the corporate world. Although retirement may sound like a no brainer, these types of individuals may not be satisfied with sleeping in and playing golf. These are the “go getting” types and I believe there is a good chance many of them will begin to invest (or purchase) small businesses to stay active and alive to them.
The newly created wealth may take over a year to trickle down, but I do believe it’s on the way. Will your business be in position to reap the rewards?
As I said in Scouting, Be Prepared!
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