In response to:

Cutting Jobs to the Bone

rpexplorer Wrote: Jan 13, 2013 7:51 AM
I took the cut as a recognition of the coming (and present) decrease in disposable income. The cut was in their vacation travel section which has not recovered in any appreciable way since 2008. Having just completed my budget and forecast for 2013, the projection showed a 12 pct decrease from 2012 so I expect to cut during the year. As a reference, my business is at 28 pct of peak.

Here’s my quandary. 

From an investment point of view, do I consider the fact that companies are, once again, laying people off as a good thing and therefore worthy of my investment dollar, or, is the downsizing a sign that the company’s business is faltering, and therefore, not worthy of my investment dollar? 

The Keynesian and current Wall Street position is that the less workers, the bigger the profit.  They call that productivity, and theoretically, it’s great for stock prices. 

The recent announcement by American Express of 5,400 workers being...