Thriving in the New Economy
Lori Ann LaRocco of CNBC just published her first book, Thriving in the New Economy: Lessons from Today’s Top Business Minds. She recently discussed it in an interview which is posted on Clusterstock at http://www.businessinsider.com/business-news/jan-21-larocco1-2010-1. In her interview she illustrated some key points from her book about dealing with the drastic changes occurring right now in the U.S. economy.
We all know that we have been in a downward spiral but the “Top Business Minds” that LaRocco interviewed for her book saw and continue to foresee pockets of opportunity. These can make even the everyday investor a good amount of money if they invest carefully. As Ron Baron said, you need to invest in what you know. He was less affected by the recession because he never invested in derivatives since he didn’t understand them. He suggested investing in institutions of higher education– while more people are being laid-off, they are returning to school to complete higher levels of education. Likewise, you should stay away from the consumer-discretionary sector because consumer spending has plummeted.
Another interesting point that LaRocco made is that governments need to work with businesses during a recession. This means rather than instituting taxes, governments should be encouraging them (someone should tell President Obama!).
We all learn harsh lessons during bad times but those that take advantage of opportunities will come out of the recession relatively unscathed.
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