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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (49978)	4/23/2006 9:57:27 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

The other two themes I've got are the auto manufacturers and - you guessed it - construction. We've hit the threshold where the steel companies' gain has become the construction companies' pain. Materials prices are rising faster than demand for construction, and I suspect this is really starting to nail profitability just as the demand is tipping due to higher financing costs. Do you have other suggestions along this theme? Short manufacturers, with a service economy long hedge would seem to be a pretty decent combination. BC BC you seem to have ir correct but at the turn I doubt the service economy does well at all. Why should it? There is a lot of discretionary spending in the service economy: nail salons, lawn service, landscaping contractors, etc. You better pick your services correctly. Mish