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Busy week…  I believe this is a sign of good things to come.  Went to an Economic forecast last week, which had some very good information.  I want to pass some of the highlights along:

There is a solid recovery which will last through 2012 (except if you are in non-residential construction).

It’s time to change our mindset in the way we are investing in our businesses, or you are going to be left behind.  The mindset has been to hunker down, due to the Great Recession, but that time is now over! The economy has turned the corner. His specific recommendations:

1. Train your folks and get them ready for the turnaround.
2. Spend money on marketing, but ONLY if you know what your competitive advantage is. If you don’t know it, develop it!
3. Have the courage to spend the money you need to build your business. Take measured, calculated risks. Most of your competition will wait.

* There will be three years of growth (2010-2012) before a flat year in 2013, and a mild recession in 2014. 2015-2017 will be recovery years.

Expect a 2019 recession (not as bad as 08-09)  (Ouch!)

The stock market will not return to the 2008 peak until 2017.

 Inflationary pressures are coming. Expect .25-.75 basis points rise later on in 2010; and 2.0- 3.0 basis point rise in 2011. Rates should peak at 7.5% in 2012.

How you can deal with Inflation: 1) Borrow as much money as you comfortably can this year (or a bit more). 2) Buy equipment to improve the efficiencies of your plants and businesses, so you’ll need fewer people. 3) Lock in all of your costs, for as long as you can. (Leases, long term costs, etc.) 4) Personally, go purchase inflation adjusting assets (real estate) in good, cheap markets – like AZ and TX and 5) invest in commodities. You will need to raise prices one year from now.