Last Updated Jul 10, 2008 2:10 PM EDT
But overseas economies might be slowing down, according to BusinessWeek:
Boosted by rising prices for oil and other commodities, inflation is spiking around the world. The problem is worst in "overheated" emerging economies, says Jerry Webman, chief economist at OppenheimerFunds. "Some of them are going to cool off considerably," he warns.Central bankers around the world are throwing cold water on their economies by raising interest rates. And inflation isn't just a concern in emerging economies. The European Central Bank hiked rates on July 3 to fight inflation, despite worries European economies are slowing down, and the U.S. Federal Reserve has signaled it won't be cutting rates anytime soon.Unfortunately, this is not one of those situations that companies can cure by shifting their sales to other geographic regions. What would be left, the Moon? At the moment, the domestic economy is nothing to write home about.
There are times you can anticipate and mitigate broad reaching economic factors. And there are the times you are hosed. In such cases, all you can do is talk to the shareholders, brace yourself, and use any necessary retrenchment wisely. If times of expansion are good to try new ventures and experiment, then when growth slows (or, heaven forbid, contraction starts), companies can calmly examine what they have been doing, anticipate what has the best promise for when things change, and begin to focus.