More Pain in Store for Restaurants
Unless you've been living under a rock for the last few days, you probably know the stock market is focused on the "fiscal cliff" and what it may or may not mean. That, of course, hinges on whether Washington's left and the right come together to hammer out an acceptable deal. Given the history we've witnessed over the last few years, this is what we call "a show-me story" in the eyes of the stock market. In other words, not only will we not believe it until we see it, but it really depends on what the deal ultimately comprises.
As I wrote in my most recent Week Ahead piece, between now and the point when a prospective deal is made, companies will hope for the best but plan for the worst. That means freezing spending and hiring, planning for job cuts and revisiting forward-looking forecasts. As the "fiscal cliff" makes the rounds in financial and mainstream headlines and becomes the topic du jour of the talking heads, consumers will view that as a warning and with a healthy dose of fear. Much like the stock market, consumers are not fans of uncertainty, and odds are that this means the overall group will pare back spending near-term. ...373 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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