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Politics : Idea Of The Day

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To: IQBAL LATIF who wrote (18666)6/26/1998 8:04:00 AM
From: Lee  Read Replies (1) of 50167
 
Good Morning Ike,..Re:<<Non- inflationary growth and strong economy are the twin engines that are pushing this market forward. >>

The final Q1 GDP of 5.4% yesterday, combined with May existing home sales of 1% and other strong numbers, including consumer confidence does not indicate that US economy will slow dramatically any time soon. Never can just put brakes on, but will have to coast down if any slowing comes. Also, a lot is made about inventory building but it's possible that it is "on purpose" due to strong consumer and orders.

So it looks like your scenario of a continuing strong US economy is on track. But it also depends on continuing low inflation as you pointed out and on a continued strong dollar which not many people recognize or talk about. Good call.

Regards,

Lee
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