Audio clip
Bob Allsbrook
Shares in most Chattanooga-based public companies dropped in the last three months as they followed the broader markets.
Some rough waters may still be ahead for 2008, said Paul Fitzgerald, a financial representative of Northwest Mutual Financial Network in Chattanooga.
He expects investors to be conservative in what they put into the markets in the months ahead. But, he added, he is optimistic going into 2009.
“From business owners we visit with, transportation companies are seeing business picking back up,” Mr. Fitzgerald said. Trucking companies often are considered predictors of future economic activity.
First Security Group Inc., parent of FSG Bank, recorded a 38 percent drop its share price in the second quarter as banking companies were under pressure.
Covenant Transportation Group’s shares fell 35 percent in the period as trucking companies were hammered by high fuel prices.
Mr. Fitzgerald said fuel prices weigh into almost every facet of people’s lives.
He said fuel won’t go down much in the near future, but people will become more accustomed to the higher levels.
Dixie Group stock also was off 21.5 percent in the latest quarter, reflecting concerns in the building sector.
Unum Group’s stock price fell 7 percent in the second quarter despite an improvement in the company’s financials. Unum, which employs almost 3,000 people in Chattanooga, reported in May first quarter operating earnings of $207.8 million, up 19 percent over a year ago.
“Despite headwinds, we’re confident we can power through these in a positive way,” said Thomas R. Watjen, the insurer’s chief executive, recently.
Bob Allsbrook, chief economist for Regions Bank, said the Federal Reserve System likely will tighten interest rates soon.
“Inflation is affecting Fed policy,” he said.
After the November election, Mr. Allsbrook predicted taxes will rise because of the budget deficit and the expiration of some tax breaks.
Mike Pare, the deputy Business editor at the Chattanooga Times Free Press, has worked at the paper for 27 years. In addition to editing, Mike also writes Business stories and covers Volkswagen, economic development and manufacturing in Chattanooga and the surrounding area. In the past he also has covered higher education. Mike, a native of Fort Lauderdale, Fla., received a bachelor’s degree in communications from Florida Atlantic University. he worked at the Rome News-Tribune before ...
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