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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 679.68+0.7%Nov 26 4:00 PM EST

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To: KymarFye who wrote (72774)3/19/2001 9:27:38 PM
From: Les H  Read Replies (3) of 99985
 
It's not clear that the general economy is in recession. If he cuts here, and we get confirmation at the end of April by way of the GDP report that we're in negative growth, then the market should fall hard regardless of rate cuts. It's likely the subsequent one or two quarters would then be negative growth also. With the recognition of an absolutecontraction instead of merely slowing growth, you'd start having cutbacks in the overcapacity. Some businesses are likely still in a holding pattern now while they wait to see if a recovery can be engineered.
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