Not always. Sometimes you have to spend money to make money. Sometimes your short term is better served by having more people on staff to meet demand or enter a market. Etc etc.
Yes, that is the proper logic. It's just not the generally operative logic of an investment community that has turned to technical analysis -- which doesn't really look that deeply into the fundamentals of the business.
Right now, people aren't hiring not because of shareholder/analyst pressure, but pressure on businesses themselves on the fiscal side, and pressure created entirely due to the actions of the government.
That's false. Many corporations actually have a lot of cash on hand. Do you not read the WSJ? Did you see Charlie Rose last night?
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Date: 31/7/10 19:10 (UTC)Yes, that is the proper logic. It's just not the generally operative logic of an investment community that has turned to technical analysis -- which doesn't really look that deeply into the fundamentals of the business.
Right now, people aren't hiring not because of shareholder/analyst pressure, but pressure on businesses themselves on the fiscal side, and pressure created entirely due to the actions of the government.
That's false. Many corporations actually have a lot of cash on hand. Do you not read the WSJ? Did you see Charlie Rose last night?