Clue number two was when the slew of profit warning announcements for the first quarter of 2000 came to an end. And when Federal Reserve Chairman Alan Greenspan lowered interest rates, everybody breathed a sigh of relief as the market came back to life. For now, she believes the US stock market is priced too cheaply. That's not necessarily a bad thing. That is, government policy, what companies do and what people in the economy decide to do.
Workers become more productive and the standard of living improves.
The enormous change in the Nineties is now reflected in the stock market. Major increases in companies' investment and reinvestment during the early 1990s changed the face of technology as well as the economy. Those were difficult company decisions at a time when gross domestic product was growing slowly, jobs were being lost, and incomes weren't growing. But five years later, those sacrifices paid off as an enormous increase in investment created 20 million new jobs, the PC outburst, and a booming economy. Cohen refrained from remarking about the Israeli market, except to say that biotechnology companies, a strengthening sector in the local market, are a critically important niche.