Alger Says End of War Will Be Catalyst for Market Boost; a Shift in Investor Sentiment Will Be a Boost for the Overall Markets.Business Editors NEW YORK--(BUSINESS WIRE)--March 28, 2003 Fred Alger Management, Inc. today released its monthly Economic Review saying financial markets remain at the mercy of geopolitics geopolitics, method of political analysis, popular in Central Europe during the first half of the 20th cent., that emphasized the role played by geography in international relations. . The economic and market data that have appeared in the past weeks offer a portrait of the economy in February and early March, before the war. However, the economy was so overshadowed by Iraq and confirms that in the weeks leading up to the beginning of the war, economic activity slowed almost to a halt. Anxiety and tension about the coming conflict dampened consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. and confidence and kept corporate America from doing anything other than going through the motions and maintaining their businesses. "Now that it is clear that this war will last longer than expected. The sharp rally during the first days of the war showed that there is indeed inert cash, pent-up demand, and a market prepared to trade up," said Zachary Karabell, Sr. Economic Analyst and Futurist, Fred Alger Management, Inc. "We think Iraq and the progress of the war will be the decisive factor Noun 1. decisive factor - a point or fact or remark that settles something conclusively clincher causal factor, determinant, determining factor, determinative, determiner - a determining or causal element or factor; "education is an important determinant of governing the short-term movement of markets. The Wall Street rally of March 17th and the palpable sense of relief that flooded the country in the initial days underscored how much the psychology of investors, and the public in general, is dictating both economic activity and the market. The psychological shift from fear to guarded hope hasn't happened yet but military success Iraq will create that shift," concluded Karabell. Founded in 1964, Fred Alger Management, Inc. is a leading asset management firm employing a bottom up approach in its attempt to identify the fastest growing companies in their respective sectors. Over four decades, Alger has continued its tradition of pure growth investing Growth Investing A strategy whereby an investor seeks out stocks with what they deem good growth potential. In most cases a growth stock is defined as a company whose earnings are expected to grow at an above-average rate than its industry or the overall market. , independent research and style purity. Fred Alger Management, Inc. offers investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and services to separately managed, sub-advised and wrap accounts Wrap Account An account in which a brokerage manages an investor's portfolio for a flat quarterly or annual fee. This fee covers all administrative, commission, and management expenses. Sometimes this also includes funds of funds. . Fred Alger & Company, Incorporated offers mutual funds as well as institutional funds for defined benefit and defined contribution plans Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan . To read Alger's Market Review in its entirety, please visit http://www.alger.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion