What will happen on the stock market? Will growth continue, or is the bubble about to burst?
By Staff -- Purchasing, 3/11/1999
According to this month's grass roots business survey, most buyers (60%) think the stock market can keep on going. Ten percent see the market stabilizing--but not falling--this year."The stock market will cross 10,000 this year.," says one Midwestern buyer. The reason? "Oil prices will stay low, computer and technology pricing will continue to drop. Interest rates will be steady. All this contributes to a favorable stock market." Most buyers are more cautious. "There will be continued growth, but it will be much slower. Asian markets are so weak that foreign money will still flow to the U.S.," says a buyer in New York. "The bubble won't burst, but it may get a leak," says a buyer in South Carolina.
A few buyers foresee some sort of market adjustment. "We hope the market will adjust to reflect the actual picture about companies that are traded," says a buyer in Maryland. A buyer in Ohio adds: "We'll see minimal growth over the next six months--then a decline as we approach the new election year. We're seeing some slowing in manufacturing backlog already." The brightest spots on the stock market? Buyers say computer-software Y2K related industries should do well throughout the year.
Thirty-percent of buyers still think the market could pop in 1999. Most in this group think the trouble will occur sometime after the second quarter. "The bubble is about to burst" says one buyer in Iowa. "Corporate profitability is continuing to decline due to lower and weakening demand." Top trouble spot? Several buyers think agriculture will lead the downfall. "Agriculture is staring down the gun-barrel of an 80's-like recession," says one.
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