I was invited to attend Vistage’s 2010 CEO Economic Summit last week where I heard nationally known economist, Alan Beaulieu, speak on the state of our economy and our options for the future. Granted, at first, I thought this could be the most boring three hours of my life. I was delightfully surprised that it was probably one of the most interesting learning experiences in my recent career!
Mr. Beaulieu covered quite a few topics in three hours and many of them I barely understood. But I did follow the main outcomes of his speech one of which was his prediction that the next two years the economy will recover, just slower than we are all expecting.
He did not have any specific stock tips to share but he did provide some tips on how to make the most of the current economic times:
- Borrow now!
- Invest in inflation-adjusted assets such as real estate. Buy short sales or foreclosures and rent them out to cover the costs.
- Invest in commodities.
- Invest in efficiency producing assets – things that will save you cash and time in a period of inflation.
Most of us don’t study the economy like Mr. Beaulieu, but these things probably make sense to you, especially right now. I was naturally most interested in number 4. Owning a business that focuses on increasing efficiency and productivity for companies, I was glad to hear it listed as a priority.
How can you invest in efficiency producing assets for your company? One way is to look at your current processes and see if there are opportunities to streamline and save costs. Taking this seriously, involving your team, and building your best practices into your own operations manual – an asset that can be used to train new employees and as a how-to guide for a potential buyer – increases the value of your company. And considering that Mr. Beaulieu’s company predicts historic turning points in the economy 96% of the time – and that he thought the best time to sell one’s company is in the year 2017 (for cash) – it might be something you should look into investing in now!
For more information on Alan Beaulieu and his company, ITR Economics, click here.
