Tuesday, 18 November 2008

When recession comes

This Saturday will be the first day below zero. Emmm...winter is coming.
Are you ready?
Not just for the cold season but also the "cold" economy...

As I wrote in last post, the interest rate of UK dropped to a historical low. However, there is still some chances to earn a rate of 7.25%! It's true, see the photo below: it is offered from RBS.
However, it's an unusual offer. The real reason it offers such a high rate is -- money in need!!! "transfer your cash ISA"

Though everyone knows recession comes, there are some industries' sales are increasing or even double. Our market professor David quoted from today's FT: Sales of cigarette, chocolate, public transportation tickets, bet shop are increasing!

However, don't be too optismitic based on that report, we should view them in this way:
1. When winter comes, people regularly need more cigarette and chocolate;
2. Now is just the beginning of a recession which means people have some money gain from good times to spend.

See in long term, very few industries can do well during the real recession period. Every pond will be spend carefully at that time. Let's see the CPI index of this Christmas.


"Why pay for Blackberry's services..."
Haha, seems Nokia is trying to earn the last 'easily spent' money. A little bit desperately, though...

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