Quote:
Originally posted by wraithhibn
Bob, I do some trading on the side. I was wondering what your opinion on the economy is for the next 6-12 months is. Have we seen the bottom(or double bottom) and gonna start moving back up or is it sideways for the near future.
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Honestly, I'm hedging my own bets as much as possible and expecting a continued slide. There are a number of problems out there. First, consumer confidence, while bouyed by the end of the war, is still slipping. Second, the Fed can't really cut interest rates any farther. Third, there's the whole SARS issue. Last, if this tax cut goes through the government is going to have to borrow more money to keep running, negating any downside pressure on the cost of money. Until we start to see some serious growth from one of the leading indicator sectors (like consumer goods), I think we're going to keep dipping. That's not to say that stocks are neccesarily going to keep taking hits, though. It seems like the property bubble is gonna burst sometime soon, out here at least prices are slipping, and you gotta put your money someplace. Unless people start putting it under the mattresses, that is.
Bob