It is now five years since 2008 and the great economic trough that affected the legal profession like no other recession. Back then, we advised: “Forget about the recession. It’s a fact of life. Pay attention to what the eventual recovery will look like and position your firm to take advantage of it.” Many are still waiting for that recovery.
For those who think that the 2013 to 2018 period will eventually resemble 2003 to 2008, think again. Interest rates—and yields—continue at historic lows and, despite some hints to the contrary, the Federal Reserve Board seems poised to continue a policy of monetary expansion for at least another year. The Affordable Care Act (“Obamacare”) roll-out is a disaster and serves only to fog up the lenses of economists and business leaders who are groping for some predictability upon which to base decisions. Hence, good money still sits on the sidelines.
