Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (4636)	10/28/2002 4:38:30 PM
From: Smiling Bob	Respond to of 19256

MAY slip??? Present administration has EVERY conceivable reason to boost the markets Xmas disappointment will be the final blow. It's what greeted 2002 recession. biz.yahoo.com Reuters Consumer Gloom May Cause Recession-Report Monday October 28, 1:03 pm ET NEW YORK (Reuters) - The struggling U.S. economy could slip back into recession if consumers don't start feeling more upbeat soon, the director of a widely-watched consumer research report said on Monday. ADVERTISEMENT Nearly six in 10 Americans rated the economy as poor in October, more than during last year's recession, a separate CNN/USA Today/Gallup poll said, despite optimism for better days next year. That gloom could soon drag on a recovery being driven almost entirely by consumer spending. "Unless the downward momentum is quickly halted, the accumulated loss in consumer confidence could tip the economy back into recession," said Richard Curtin, director of the University of Michigan's Consumer Research Center. Consumer sentiment has eroded for the past five months, taking out the lows seen after the Sept. 11 attacks. The University of Michigan said on Friday its sentiment index fell in October to 80.6, its lowest in nearly a decade. Private research group The Conference Board is due to release its monthly index of consumer confidence at 10 a.m. EST (1500 GMT) on Tuesday. It is widely expected to fall, despite a recovery in the broad stock market from five-decade lows. Many analysts are concerned the risks for a pullback in spending are climbing right ahead of the crucial holiday retail season. Most retailers book about a quarter of their sales during the November-December holiday season and some book the bulk of their profits during that period. Already retailers are feeling the pinch on profit margins from consumers aggressively hunting for bargains. "The holiday shopping season will be challenging for both consumers and retailers," the University of Michigan said in its October report. Added Curtin: "Consumer spending will depend on getting even larger discounts, and profits will depend on making even larger cost cuts." The one really bright spot had been the auto sector, with zero-percent financing and other offers keeping sales up near historic highs right through to August. However, sales slowed sharply in September and figures for this month due at the end of the week are expected to show another round of aggressive discounting from the carmakers could not prevent further erosion in sales.