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Strategies & Market Trends : New US Economy Policy

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To: Arthur Tang who wrote (264)3/20/2001 6:10:11 AM
From: Arthur Tang  Read Replies (1) of 435
 
What timing makes this new economy go? Or when is the money really changing hands?

The investment market of idle money is always tax payment oriented. Fully invested is the motto to get every dollar to perform. In money market funds that is the motto. In all other investment methods, the idea is to catch the maximum gains and then park the money for the next maximum gain opportunity again. So the market timers have a schedule to invest and divest according to tax payment periods.

In the real world of manufacturing, it is the planned "obsolescence and replacement" cycle that counts. When products saturate the market, then new production of new and better products gets to the market. It is X'mas oriented, when money is saved up to give gifts of things people hunger for. X'mas has 20% more business than other months. It is also 50% more profits in the year for retailers on the 20% more business in the month.

However, 33% of our new economy is now in the service sector. The job growth for higher standard of living requires tailored services(specialization). There we have only "mean time before failure" as orientation. There could be planned timely service, even out through the year. We have to work on that part of weekly planning yet. New emphasis is home delivery(transportation) created by internet business transactions.

The new economy is still evolving; and no end is in sight; even for any deterioration to start. God willing. But watch out for any failure in planned obsolescence and replacement designs. God forbid. Corrections have to be swift. Any new products(such as Intel P4 with Rambus only) which can not be sold(saturated) have to be replaced immediately.
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