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Strategies & Market Trends : New US Economy Policy

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To: Arthur Tang who wrote (205)2/8/2000 8:51:00 AM
From: Arthur Tang  Read Replies (1) of 435
 
Clinton fears slow down in his last year. Budget ballooned to $1.84 trillion to save the economy.
What he budgeted, has to pass through congress. But some budget has to have citizens apply for the benefits. Congress thinks that the budget is $350 billion over last year's spending. If last year spending is only $1.5 trillion; we will probably have the same spending this year also. Demand side economy is steady with new products and services fueling retail. Retail inventory turn over strategy continue to provide strong dollar for consumers in this country.

Bridge news reports, Wall street fears net investment will outflow by $38 billion per month. Based on the fear that insiders will sell into the market. 401k is expected to continue $22 billion investment per month. Foreign investment into US equity market will depend on currency stability and stock market comparative growth. European markets have slowed down in growth; and Japanese market is slowly moving despite currency jitters(however, jitters will send Japanese interests into US markets). This is illustrated by the continued growth of Nasdaq market from new money coming into Wall street. Nasdaq market is fueled by cost cutting and earnings growth as internet expands.
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