Thursday, November 1, 2012

Retrenchment! Is this the symptom of Economy Slowing Faster than Expected?

Recently, I read a lot about retrenchment from major companies around the world. A series of retrenchment is happening recently, is this the sign and symptom of economy slowing down faster than expected? Retrenchment will cause a major problem to the economy because it will lead to a series of chain reaction in the financial industry, retail industry, properties sector,manufacturing industry and etc.

Let us have a look at the top retrenchment recently.

  • Sony to cut 10,000 jobs (9th April 2012)
  • UBS plans 10,000 jobs cut (28th October 2012)
  • Ibedrola cuts 1200 jobs (30th October 2012)
  • Qantas 2800 Job Cuts (15th August 2012)

Well, those are the major retrenchment I can find and I remember. I think that most companies will take this step to reduce expenses during the hard time. So, this means that the economy is not looking good. Companies are not making good money, the earnings missed target and some companies making losses.

In my opinion, our stock market will have a major correction coming soon. If you want to get prepared for the major correction, prepare some extra money in your portfolio and get ready to buy good stocks at cheap price soon.

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2 comments:

CK TAN said...

I hear that coming PRU13 our market stock will go down, so that is the time for me to buy some blue chip stock

Lee Liang Wee said...

What is PRU13?

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