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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Brown who wrote (48268)	10/24/2001 12:08:04 PM
From: stockman_scott	Read Replies (1) \| Respond to of 54805

An interesting perspective by Morgan Stanley's Stephen Roach: morganstanley.com <<...All in all, the financial markets are sending us an important message: Investors remain enamored of the rosy scenario. They want very much to believe in the time-honored magic of economic recovery. There is a presumption that America will once again lead the way out, just as it did when the world went to the edge in late 1998. I continue to find myself on the other side of this optimism. Despite the response of the monetary and fiscal authorities, the US economy is now facing two formidable challenges -- coming to grips with its post-bubble excesses (current-account deficit, capacity overhang, low personal saving, and high household debt) and facing the lasting implications of The Attack (higher business operating expenses and lower productivity growth). This tells me that the vigor of any recovery will be short-lived, as will any outbreak of inflation. It also raises serious questions about long-term corporate earnings expectations. Until those considerations get priced into financial markets, I’m not on board...>>