Wednesday, April 01, 2009

Recession is more in your mind than in the market...

This story is about a man who once upon a time was selling Hotdogs by
the roadside. He was illiterate, so he never read newspapers. He was
hard of hearing, so he never listened to the radio. His eyes were
weak, so he never watched television. But enthusiastically, he sold
lots of hotdogs.

He was smart enough to offer some attractive schemes to increase his
sales. His sales and profit went up. He ordered more a more raw
material and buns and sold more. He recruited more supporting staff to
serve more customers. He started offering home deliveries. Eventually
he got himself a bigger and better stove. As his business was growing,
the son, who had recently graduated from college, joined his father.

Then something strange happened.

The son asked, “Dad, aren’t you aware of the great recession that is
coming our way?” The father replied, “No, but tell me about it.” The
son said, “The international situation is terrible. The domestic
situation is even worse. We should be prepared for the coming bad
times.”

The man thought that since his son had been to college, read the
papers, listened to the radio and watched TV. He ought to know and his
advice should not be taken lightly. So the next day onwards, the
father cut down the his raw material order and buns, took down the
colorful signboard, removed all the special schemes he was offering to
the customers and was no longer as enthusiastic. He reduced his staff
strength by giving layoffs. Very soon, fewer and fewer people bothered
to stop at his Hotdog stand.. And his sales started coming down rapidly
and so did the profit. The father said to his son, “Son, you were
right”. “We are in the middle of a recession and crisis. I am glad you
warned me ahead of time.”

Moral of the Story: Recession is certainly there but its more in your MIND than in the market… And we actually FUEL this recession much more than we think.

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