The Economic Situation

Paper Summary:

This paper explains that believing everything one reads may lead to a false sense of economic security. The author points out that the economy may be improving, but economists are only hoping that corporate America will get that sense of security and, therefore, create the economic resurgence the nation so desperately needs. The author predicts that, after experiencing investment deficiency, organizations will slowly increase their levels of spending, which will eventually add jobs. Charts.

Table of Contents
Introduction
Current economy
Inflation
Unemployment Figures
Iraq/Military
Investment
Airline industry
Oil
Forecast 2004
Conclusions

From the Paper:

"Recently new scandals have been brought to the forefront of the media regarding the mutual fund fraud and favoritism. Yet the market continues to gobble up large amounts of cash because Baby Boomers are nearing retirement. The key is that investors should be in the market for the long haul to reduce volatility. We should understand that sell-offs can happen. There are always speculative bubbles, a lack of confidence in the economy or market, potential recession, increased inflation, a possible war, or simply "just because." Going back as far as the 19th century proves stocks are not any riskier than bonds in the long run and although returns fluctuate from year to year, volatility is all but canceled over longer periods."

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