A Double-Dip Recession, I think not!

To me, all of this talk of a double-dip recession is nonsense. It had become clear that companies who thrived through the recession are going on a shopping spree. Just a few examples over the last couple of days:

– Walmart to buy Massmart Holdings for $4.6b

– Southwest Airlines to buy AirTran for $1.4b

– Unilever to buy Alberto-Culver for $3.7b

Those are three significant deals. So what does that tells us? That companies are ready to spend, ready to expand and ready to grow. Each of these acquisitions will help the buyer with expansion into new global markets. We still need to be careful, but investors, both personal and corporate, are coming back. I think we are in for a good run in the near future and we will see more consolidation and acquisition as companies that were successful during the downturn use their cash to snatch up strong assets that are undervalued. It should be a fun ride.