There has also been an increase in mortgage applications for the purchase of homes. The beginnings of the response we need to see are already happening and, down the road, the economy will respond to the Fed rate cuts. The market seems to be reflecting that not only will growth be weak this year, but will likely be weak next year as well. We don't think this is a very likely case. Evidence of weakness is in capital spending, particularly technology.
Inventory excesses in technology are at the worst in the entire economy right now.
By year-end 2001, we think all parts of the economy will be growing more rapidly than they are now, including technology. Additional information available. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and particular needs of any specific person who may receive this report.