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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: Robert Scott who wrote (27743)1/16/2002 10:52:21 AM
From: Paul Shread  Read Replies (1) of 52237
 
>>I have heard that consumer balance sheets are actually healthier than they were coming out of the last recession with a significant increase in housing prices and stocks in spite of increases in debt.<<

ntrs.com

Given the recent surge in credit, those numbers are probably even worse now.

>>If the consumer should pull back significantly, it will get bad.<<

The question to me seems to be when, not if. Again, I don't know when, but it is inevitable that the consumer consolidate at some point.

>>First and foremost, there is only one sector of the economy that is really suffering - the tech sector. <<

Manufacturing has been in the longest decline since the Great Depression.

>>The difference with this recession is that it is a capital spending driven recession rather than a consumer spending one.<<

Those tend to be tougher to overcome, and certainly less responsive to interest rate cuts.
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