Home > Recruiting > Random Thoughts On Recruiting – What Is The Market Telling Us?

Random Thoughts On Recruiting – What Is The Market Telling Us?

With the big drop in the Nikkei over night, our stock market started off today with a solid drop.  This comes after we just dipped below 12,000 yesterday.  The upward trend we’ve had in the market was broken a few days ago, but this drop makes it a solid break and change in the trend to down.

While on the surface this looks news driven from what is happening in Japan, the reality is the markets are always gathering all information in and are way ahead of the game.  There were some great discussions about the market around 10,000 and how below 10,000 was really bad for business conditions and recruiting and above 10,000 was good.  That was basically true, but really the market was doing what it always does, showing us where business condtions are going.  The biggest money out there is in the market and it doesn’t screw around.  Many times you’ll hear the term smart money, and yes the smart money is large and drives the markets.

So for those of us in business, it is worth paying attention to what the market is telling us.  If the situation in Japan were to improve or settle down and the market shot back above 12,000, then you would look at this as a temporary worry over news, but know that business conditions are really pretty good.  However, that seems unlikely now.  If it makes a try at 12,000 and then comes down, that will tell you that things are likely getting worse.  The market has been in a real strong trend here from around 10,000 and that lead business conditions and thus recruiting.  There is always a lag with what business does from what the market tells us, so there is probably some room to go here.  However, watch the market and especially how it reacts once the news settles down.  It will tell us, in general, where things are headed.  The real good news is still the same though, the big event for all of us was the bubble burst in 2008 and that did two things.  It cleaned out business and industries and it hardened all of us so difficult situations like this don’t do as much damage.  Business people understand that life and business go on, and that 2008 was the biggest shock and had the biggest impact that we’ll see on business.

Todd Kmiec

Todd Kmiec and Associates


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