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Strategies & Market Trends : Buffettology
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To: Dale Baker who wrote (2709)12/20/2000 6:35:16 PM
From: Ryan Hess  Read Replies (2) of 4690
 
This discussion in interesting

here is some quick speculation:

(1) cash wages as a percent of GDP start to increase
(2) corporate profits start to decrease as a result of (1)
(3) new housing starts remain robust because of high home prices in many markets (demand is high for lower cost housing)
(4) even in a flat or recessionary economy home building remains robust because of buoyant cash wages and lower home prices
(5) a lot of home building products are purchased

Ryan
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