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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Square_Dealings who wrote (75261)4/17/2001 11:32:32 PM
From: Ibexx  Respond to of 99985
 
michael,

Corporate layoffs during, before, or after a recession are usually driven by 2 main factors:

1) Economic necessity/survival - hoping to come out of this debacle leaner and thus more competitive.

2) To weed out dead wood or, in corporate language, to re-engineer themselves by changing skill sets or core competence. Those who have access to the insides of corporation will notice that, while they are firing, they are also hiring.

Just because the "worst" may be over doesn't necessarily mean that they no longer have hot potatos in their hands. It's all a matter of relativity.

I feel the timing of this rally - I consider it a reversal rally, rather than a sucker's rally - is about right as market invariably preceeds (economic) reality by six to nine months.

Regards,
Ibexx