. Managers must first distinguish between temporary and fundamental problems affecting their stock price. For example, supply chain issues, especially form China’s zero-Covid policy, can be expected to normalize more quickly than those stemming from the Russia-Ukraine war. Recession concerns should cease in a year or so, as the underlying productivity and unemployment remain strong.
Instead, companies should prioritize segments and business lines that are performing the best in order to bring revenues and profits more quickly and subsequently regain investor confidence., for example, will focus on branding and marketing and exit manufacturing. Experiments with uncertain payoffs can wait. A rising rate environment with massive inflation means that long-duration assets — those that will potentially deliver cash flows several years from now — get low valuations today.
Nevertheless, firms must keep looking for new revenue sources that can accrue with little investment. For example, Netflix is planning to introduce