The market is bullish! Business leaders I’ve talked to are as excited as I can ever remember for what’s to come this year. Now that the election is settled, the stock market is climbing, interest rates have dropped and confidence is up as the expectation is for a business-friendly tax environment with less expectation of stifling regulation. I get the sense that now is the time for business leaders to place their biggest bets and let it ride.
This past year, the business environment seemed to be marked by hesitation. Leaders were reluctant to invest in their businesses and were underconfident in the near-term returns. In the M&A world, there was a disconnect between buyers and sellers on valuation, leading some owners to hold off on acquisitions or exit plans. Higher interest rates cut into returns, and the narrowed margins drove a deeper dive into costly and time-consuming diligence. There was a chill in the market. But the sense now is that the ice is about to break.
My anecdotal sense of how re-energized business leaders seem to be is backed up by a poll conducted in December by Chief Executive. Talking with 135 CEOs, the majority are expecting a more business-friendly environment, and that’s driving a sense of better business conditions to come — some 58 percent of those polled expect business conditions to improve by the end of this year. Further, some 73 percent of those polled are predicting an increase in profits in 12 months.
The time is right to be bold. Confidence is high and the sense of uncertainty that plagued many in the C-suite these past few years is behind us. So, push your chips in and let it ride in an economy that’s signaling that returns are out there waiting.
Fred Koury is President and CEO of Smart Business Network Inc.
