Carl Young of Johnson City, TN: Big Corporations and the Economy

Carl Young of Johnson City, TN is a day trader and marketer who is a serious student of markets, market conditions and of the economy. The businesses such as Apple, Google, Facebook, Microsoft, Toyota, Bank of America and others have succeeded on a tremendous scale. We usually don’t get to hear about businesses that went into bankruptcy or have lost their market share to competition without any significant successes.

For example, A&P grocery chain had fifteen thousand stores in 1929, making it the largest retailer in the United States. The company quietly went into bankruptcy in November of 2015 after 156 years of operations. This fact proves that organizations that participate in economic activities are not static entities. They rise and fall as a result of the constant changes and competition in the marketplace.

Twenty-six companies have dropped off, the Fortune 500 list of the largest companies in just one year, between 2010 and 2011. At the heart of all such changes, are profits and losses. Both profits and losses are equally important to the efficient usage of limited resources by marketplace participants. Industries and commerce do not change just because of human management decisions.

Numerous, constantly-changing factors pose a threat to profits and lead to even the biggest companies posting losses. Many products and services also have profit rates change drastically over time. Usually, companies are able to make larger profits when they introduce new products and services to the market. 

Higher profit margins mean that competition begins investing in research and development and brings similar products to the marketplace, thus driving the prices and the profit margins down. This makes an impact on all the markets, including foreign exchange markets where Carl Young of Johnson City, TN trades.

Carl Young: The Most Important Thing to Understand About the Economy

Carl Young of Johnson City, TN is a day trader and realtor who is interested in how the economy works.

The most important thing to understand about the economy is that economic conditions change, bubbles turn into crashes, times come and go and the only thing that you can do about all of these is to prepare beforehand. No one knows, for certain, when significant economic events will happen or how they will look like. However, history does provide us with some clues.

Events like stock market crashes usually occur when a regular economic cycle loses the balance. There are periods of growth, development, new technologies and trends occurring in the market. At some point, investors get overly excited and optimistic and a bubble may develop. Stock market bubbles usually come with overindulgence of credit and excessive spending.

This is why one of the best ways to be prepared for a downturn of the economy is to have minimal consumer debt, do your best to pay your mortgage early, save for emergencies and take advantage of lucrative investment opportunities. 

Bubbles and recessions do not happen just because of the stock markets or financial markets. The housing bubble in the United States started to develop in 2001 and burst in 2007 and 2008. To protect yourself from real estate bubbles, be very careful on the cost of the house you are buying.

Do not simply rely on the recommendations of your real estate agent and lender. Do your own math, work out your budget and make sure that you can afford the mortgage. This is what Carl Young of Johnson City, TN would do before making any financial commitments.