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Business Cycle

All articles tagged with #business cycle

business1 year ago

Amazon Health Division Layoffs: Normal Business Cycle or Cause for Concern?

Amazon's healthcare chief, Neil Lindsay, reassured employees in a leaked email that the recent layoffs are part of a normal business cycle and not a reflection of underperformance. He emphasized that successful businesses often undergo reorganization to realign resources, and pointed out that similar job cuts have occurred in other companies. The layoffs, which affected One Medical and Pharmacy units, are intended to reposition resources for better investment in growth areas. Lindsay highlighted the success of Amazon's healthcare business and the integration of One Medical's teams into Amazon's healthcare business. The layoffs are part of a plan to save $100 million in operating expenses following Amazon's acquisition of One Medical for $3.9 billion.

finance2 years ago

Decoding the Yield Curve: Insights on the Business Cycle and Stock Market from a Strategist

Chief economist and market strategist Michael Darda at Roth MKM warns that equity investors should not dismiss the predictive power of the yield curve inversion. Darda's analysis of seven decades of yield curve history shows that the inversion has preceded recessions by an average of 14 months, with a range of seven to 25 months. He cautions against assuming a "soft landing" for the U.S. economy and advises investors to be wary of post-inversion equity rallies, as they have historically been completely reversed before subsequent recessions or bear markets.

economics2 years ago

Bidenomics: A Mixed Bag for the Economy

President Biden is facing a critical challenge as the overheated job market begins to cool off, with the possibility of either a return to normal or a slide into recession. Biden had hoped for a mild recession in 2023 followed by a recovery by the 2024 elections, but that scenario seems unlikely. The Federal Reserve, which has already raised interest rates, may further tighten monetary policy to combat inflation, potentially impacting employment. Economists are divided on whether the slowdown in hiring is a temporary blip or a sign of an impending recession. Biden's economic prospects and the 2024 election may hinge on the outcome.

business2 years ago

The Fortune 500's Mixed Message on the Economy: High Revenues, Low Profits

The Fortune 500 list for 2022 showed record revenues but plummeting profits, leading to concerns about an imminent recession. However, economists argue that this is a natural part of the business cycle and not a cause for immediate concern. Rising interest rates and a slowdown in economic growth are causing a "margin compression" period, leading to falling profits. While some believe "greedflation" is delaying the onset of a recession, others argue that it was merely a result of supply and demand imbalances. Businesses should start planning for a recession, but it is not an imminent threat.

finance2 years ago

The Fortune 500's Mixed Message on the Economy: High Revenues, Low Profits

The Fortune 500 list for 2022 showed record revenues but plummeting profits, with companies earning $1.56 trillion in profits on $18.1 trillion in revenue. Rising interest rates increased borrowing costs for many companies, while the tech sector saw its profits sink sharply amid the e-commerce slowdown and return to office trend. Economists argue that this is a natural ebbs and flows that occur in earnings during business cycles, and while profits will continue to sink this year, it is not an imminent threat of a recession.