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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?


To: Steve Lee who wrote (12748)6/12/2002 4:30:13 PM
From: David Howe  Read Replies (2) | Respond to of 19219
 
<< If we are at recession lows in terms of sales then how come GDP is at an all time high? >>

Government spending and the amazing consumer.

<< If most companies have higher margins, then how come most companies are reporting lower earnings on those all time high sales? >>

Sales have been maintained by lowering prices, thus cutting margins. As the economy recovers the pricing pressure should be reduced and sales and margins will recover in tandem.

That's the bullish theory at least.

IMO,
Dave



To: Steve Lee who wrote (12748)6/12/2002 4:59:07 PM
From: nsumir81  Respond to of 19219
 
The GDP calculation has a nice twist..Lower imports (weaker economy being a huge importer) give a higher GDP. Yep new math. Even Larry Kudlow for all his bullishness conceded that this masks the real strength/weakness in the GDP numbers and he said this after the 3Q (corrected) 2001 GDP nos were released. This I remember.