Are sectors outside of telecom booming as well? Many companies are flush with cash, and using it to buy back shares, rather than spend it on R&D or capital investment. Why?
When I was at Neiman Marcus last week, the cosmetics sales lady told me their business was booming. They have the best store in their chain and have exceeded their quotas. But they cater to rich people (I only buy my face cream and makeup there). She gave an example of a recent customer, a lady who was there for only a few minutes and bought a $10K purse, two $10K necklaces.. She told me that her store is not subject to recessions, because rich people can always shop.
I hope corporations can pick up the slack for the consumer. But then, if the consumer weakens, why would companies invest in their growth? If sales decrease, wouldn’t companies cut back spending as well? If corporate spending increases, wouldn’t it be channeled toward cost cutting, such as getting a phone system to replace the receptionist, better inventory tracking, stuff like that?
As far as the degrees, my husband is a Professional Mechanical Engineer, I have a BS in Computer Science and MBA, and most people I know have computer or chemistry degrees.
