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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.07-3.0%2:04 PM EST

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To: Elroy who wrote (74335)10/29/2007 2:04:36 PM
From: RetiredNow  Read Replies (2) of 77400
 
True the economic metrics showed the economy slowing and this 5 year cycle has come to an end with sub-prime and real estate taking a dump. However, the Fed is starting to lower rates and inflation is headed lower, which will give them room to act.

Keep in mind the market looks 6 months ahead and the Fed rates take 6-9 months to work their magic on the economy. So I bet we see the market take off over the next 2-4 months and the economy will follow suit in the second half of next year. So a new business cycle will begin next year.

As far as Dems taking office, I think it will be seen as a huge positive for the market. Consider this. Republicans are good for big business, but the stock market has historically done better under Dem Presidents. Republicans have the reputation for fiscal conservatism, but historically Republicans have far outspent Dems while in office. This administration is for a war that has cost us $650B and counting. A Dem administration will bring that war to a close, which will mean more money to spend on Americans instead of on Iraqis

For all of those reasons, I believe that if we get a Dem President, the stock market will surge through 2010. JMHO
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