Staying the Course
In the past we have written about the new normal economy, a new reality which will present many challenges to success and profitability. This environment is like the aftermath of a major earthquake where there are a series of aftershocks. The events of the past weeks in Europe are good examples of these aftershocks. Until the world effectively de-leverages, the aftershocks will continue in varying intensity.
In our view, asset managers have begun to adjust to this new reality. Although they are still cautious about the environment, as they should be, they are making decisions and moving their businesses forward. This is a healthy sign. They are not as frightened by these events as they were during the most intense period of the financial crisis. They seem to be looking soberly at the situation before them and trying to make thoughtful intelligent decisions.
The best managers realize that this will be a time when strategic decision making, effective execution of those decisions, and persistence will pay off. They should keep their antenna up for the next aftershock, but stay the course.
Add comment May 23rd, 2010
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