Much of my information here, I gleaned from a recent lecture given by Ned C. Hill, former dean of the Marriott School of Management. In my spare time, I have been reading profusely on various topics, stocks being only one. Market fluctuation and stock market advice are issues that concern not only those in the signage industry, but the nation as a whole. What do we do with the massive cyclical movements in the market? How can we invest wisely and confidently in our industry? Isn’t our industry poised for growth this year? If so, how can I best take advantage of that during the current declining crisis?

In most cases, we need to wait it out, like bursting a boil. You cannot rush certain things. Patience for a bounce-back is absolutely necessary. However, too much reticence for risk will retard your return. I consider myself a skeptical optimist which is why I adhere to the Joseph Kennedy style for investing: when my shoeshine boy starts telling me which stocks to buy, I know it’s time to get out of stocks. I may not be an expert, but I hope the following statistical information will help you as you decide where to put your money in the coming months and years. 

When 

The first question is when to buy. Let’s first examine some numerical data. 

• The greatest return ever in the overall market happened from May of 1932 to April of 1937. The return? 367% !
• The second greatest return in the market was witnessed from July of 1982 to June of 1987. Not as high, but still a whopping 267% return! 

What 

Determining which stocks to purchase is the most difficult part. This requires skeptical analysis of financial statements. Which I could do for you, but then you would have to blame me for any losses, which I certainly don’t want. Instead, I’m going to give my generalized advice in a “process of negation” form. That is, I’m not going to suggest what to purchase, but I’m going to suggest what not to purchase. It’s about as easy to lead someone into a mistake as it is to lead them away from one. Success? Well, that’s an entirely different topic. 

Wireless Ronin and Broadsign are two companies who’re currently bleeding. Both are bleeding out the nose right now. Although recent developments at Broadsign look promising  (namely agreements with Ingram Micro and a new leader in Dusho), my conclusion is still not to purchase yet. Take a lookat their most recent financial statements, including all their important ratios. It’s not looking too good. At least Wireless Ronin has been cutting back, but that may just be a last ditch effort toward survival. 

Perhaps, Hughes (owner of Helius), Scala, and 3M would be decent purchases as we continue to see growth this year. You’ll have to look into their financials on your own time, as it would require a much longer discussion here. 

Some Great Books to Read on the Subject

I am a stong proponent of the entrepreneurial spirit of American. In fact, most of American jobs are not administered by the large, publicly traded enterprises, but by local and regional thriving businesses. Productivity increases, fueled by technology, have been huge contributors to aiding in the growth of our economy. Think about this statistic: the growth of the U.S. economy from 2002 to 2007 exceeded that of the entire Chinese economy. Our capitalist approach of low tax rates, innovation and personal drive and commitment have taken us to our current status.