According to Sable, while price is important in a recession, the majority of price-driven consumers still factor in the importance of branding.
Houston went through a devastating recession in the 1980s as the price of oil plummeted and 220, 000 jobs were lost.
Oil prices fell something like 15% in the third quarter as markets began to price in the prospects for substantially slower growth across the developed world and tightening in the fast-growing emerging markets. (Read Oil Down More Than 15% This Quarter As Sector Stocks Price In Recession).
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Since 2001 when the current long-term bull market started in gold, there have been seven corrections in price that were more than 10%, including when the global recession hit in 2008-09 and last year during the European worries, he said.
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Multiple expansion occurs when stock prices move higher relative to earnings or when earnings move lower relative to price (as in a recession).
"The situation in Greece has taken a turn for the worse, with the economy increasingly adjusting through recession and related wage-price channels, rather than through structural reform-driven increases in productivity".
In a free market economy, the recession itself causes price changes that create incentives for job creation.
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He had already sold 22% of his company to British Telecom, and the debt load knocked two thirds off his stock price in the next two years, as a recession cut into revenue growth.
Although mass retailers are resorting to deep discounts, the luxury sector has been able to restore some of its core, full-price selling, which all but disappeared in the recession, said Mr. Sadove, the Saks CEO.
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When we looked at maximum drawdown during the great recession we just came through, both infrastructure and commodity MLPs declined in price with the broader markets, but were within a percentage-and-a-half of each other in the maximum drawdown.
The Intrade price for "U.S. will go into recession in 2008" is 70.
Energy prices, led by a 13% rise this year in the price of oil, have hit new post-recession highs, also driven by the global recovery, as well as the oil cartel Opec's apparent unwillingness to increase supply.
Europe has a price on carbon, via cap and trade, but it burned more coal last year because its price on carbon is so low in the wake of the recession and because it needed coal to make up for the disruption of oil exports from Libya.
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Investors aware of history can see disturbing similarities with the Great Asset Price inflation of the mid-1930s which culminated in the Roosevelt recession of 1937-8.
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With the economy flirting with recession and household incomes still falling in relation to inflation, the government just cannot afford to price businesses and households off the road.
What all that means is that, if the USA enters into a recession, it seems difficult that the rest of the world do not enter into a recession as well, with the unavoidable fall in one of its major causes, the oil price.
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Consumers are recovering slowly from the recession, as unemployment claims begin to show a reduction in Americans out of work, suggesting that price increases at retailers that feel the effects of higher cotton prices may not be immediately absorbed by shoppers.
The rising world oil price brought a return to economic growth in Venezuela in 2011 after two years of recession.
There was a slight downturn in 2008 and 2009, attributed in part to a growing public campaign against bottled water and in part to the severe recession, but sales have resumed their upward climb as companies cut the price of bottles and launched an even more aggressive media and advertising blitz.
But if asset price inflation turns to asset price deflation first, bringing about recession, then goods and services inflation is pre-empted in the immediate cycle.
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Estate agents in the area said the recession had led to a dip in sales, but not of premium seafront homes which were still rising in price.
The heightened costs came about after falling demand during the recession led to cutbacks in supply, yet consumer demand has returned up ahead of supply, leading to the price pickup.
Why has house-price inflation been so robust over the past year despite a recession or at least a sharp slowdown in most economies?
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