What does this mean? Well for share prices it's hard to say. The obvious answer is bad news -- the New Economy seems less and less impressive with each revision, and share prices still price in a bit of New Economy productivity growth. But perhaps perversely share prices might rally on the news -- the puzzle why companies were doing so badly in a growing economy has been resolved. The economy wasn't growing. Therefore if the economy recovers, one is perhaps more confident that company profits should recover too.
Well, at least that's what your fund manager will tell you....
posted by Matthew @ 7/31/2002 02:46:00 PM
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