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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 338.73+0.7%Dec 10 4:00 PM EST

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To: MrGreenJeans who wrote (945)4/4/2001 9:03:19 AM
From: Boca_PETE  Read Replies (2) of 10065
 
Mr. GJ: I hear conflicting stories about the nature of the current economic downturn and chances for a quick recovery from the guest experts appearing on CNBC etc.

(1) Some say it's just an "Inventory Correction" and growth will quickly resume when excess inventories are worked off.

(2) Others say it's a "Capital Expenditures Correction" where companies cut capital expenditures that would have generated future profits. These people say the recovery from the effect of such CAPEX cutbacks will take much longer than people currently expect.

In response to (2) above, I heard Patrica Chadwick on CnnFn say that high tech recovery will be quick because such companies spent many R&D dollars and there will be a great demand for the resulting new products (ie. Don't worry - be happy).

I'd bet may would be interested in having you explain any opinions you might have from your economics viewpoint on the above issues ?

Thanks in advance.

P
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