Last week, as mentioned in a post about Fire Hose Blast of executives, I had the opportunity to sit down with many upper management level executives from various industries. I came away with some very interesting information from different areas of the economy:
In the Energy Sector (Oil at $80 +/ barrel my notes should not be surprising):
- Growth as aggressively as feasible without getting sloppy.
- Good times ahead as oil looks to go higher, and many believed natural gas will follow soon.
- Expand footprints as much as possible for 2011-2012.
Mortgage Reit Companies (This is where we gets interesting):
- Worried about higher short and long-term interest rates. (This is in line with our thinking.)
- Nothing about lower rates, only concern about higher rates.
- Prepared for small moves in higher rates, but VERY concerned about larger + 2% fast move possibilities.
Transportation Companies (These companies are generally broad leading indicators):
- Things are growing, but slowly, and conservatively.
- Clients being cautious and very frugal with spending.
- Cut costs as much as possible.
- “Raise your hand if you can tell us when the slowdown is over..” Led several conversations.
The fun part of getting to visit with many different teams from various parts of the economy is the broad brush effect.
In summary, certain areas of the economy are good, others just ok, and some struggling. Overall I came away with a very good feeling towards managers of these companies, as they had all learned a great deal over the last two years and are better managers for their shareholders.
Coming soon, a few interesting quotes from the second day luncheon !
Have a Great Day !