With all of the negative information flowing from the mainstream media, I find that it is often refreshing to take a few minutes to look at the positive side of current conditions. Anyone in business in the North Valley is struggling with how to improve the income of his/her business. Information is valuable, but you must know how to use it, or it is simply information. In the information world we live in today, it is not simply a matter of how to get more information, but rather how to filter through the mass of information we receive—and then make some sort of positive use of that information—that ultimately affects a businesss’ bottom line.
The stock market is improving and has increased in value in the range of 60 percent from the market low in March of this year. This is a major increase in the overall value of the market. The upswing is important for two reasons. First and foremost, it is an indication that people have increasing faith in the economy, and they are willing to invest again. The second reason I think it is important for those of us in business in the North Valley is that it means people who are on the brink of retirement can begin to think about selling their homes and moving north.
Many people with 401k funds are reluctant to retire and roll over their assets in a down market. The improvement in the value of securities will help people move forward into retirement. As more people choose to retire, we in the North Valley will experience an influx of new residents. These new residents have a very attractive profile to those of us in the business community. Newly retired families who move to our area often bring with them their own income stream and sufficient assets to pay cash for a new residence. They also are in a financial position to make major purchases to accommodate their new leisure lifestyle. They do not have children to crowd the school system. They provide a broad economic base for the local medical community. In short, they bring a permanent boost to the local economy that benefits local businesses.
People retiring from the metropolitan areas of our state move north to seek a better quality of life, and many view the North Valley as providing that enhanced quality of life. When you are thinking of what to do with your business to improve your profitability, keep in mind that every third person in our country is between the age of 43 and 63. That means that the baby boomers are all headed directly into retirement, and they represent one-third of our population. I believe the baby boomers are going to change the way we look at the economy.
There is an excellent report available as a free download from The Great Valley Center in Modesto. Go to greatvalley.org and look under publications for: Assessing the Region by Indicators: The Economy, third edition. This report provides an easy-to-read and understand summary of economic indicators in our region—North Sacramento Valley, Butte, Colusa, Glenn, Shasta and Tehama counties.
Jack Van Rossum C.C.I.M. is an independent real estate broker in Chico. He can be reached at 530-342-6915 or at jrossum@sbcglobal.net.
By Jack Van Rossum
