1) Short sellers who bet the share price to crash, now seeing their profit bellying
2) Intraday traders benefiting from the volatility
3) Those who gained from the 2006-2007 stock market peak and exited gracefully
There is another group that I am truly impressed with - those who provide value for money.
It is in the environment of crisis that people or companies that truly deliver value for money will stand out. Apple is one company that beat Wall Street expectations in their 4Q results. They have consistently invested in innovation and brought value to their products. As people tighten their belts, profits will go to places that can deliver more for less, stripping away the marketing fad to reveal true value. Case in point, McDonalds have successfully positioned themselves for 11% increase in profit as they gradually move towards being health conscious and providing a cheaper alternative for meals. In fact April this year, CEO Jim Skinner has switched McDonalds to using trans-fat free oil in all of their US and Canada restaurant outlets.
India, is another example benefiting from cost cutting measures of major banks as a lucrative offshore outsourcing provider. While investment banks from all over the world are cutting manpower, India is hiring.
As the cash trickles from luxurious spending to economical spending, the group of people who provide more for less will stand to benefit the most.
Who are the winners in this financial crisis? Among them are those who bring savings to your wallet.
