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As we enter 2002, it is our view that with short-term
interest rates at 40 year lows, monetary policy remaining very loose and money
supply increasing significantly, investors will be confronted by
liquidity-driven securities markets.
This central bank-inspired liquidity should be a necessary
positive catalyst leading toward higher stock prices. Moreover, with a
slowly improving economy, investor demand should strengthen for fundamentally
undervalued, dividend paying common shares. This convergence of monetary
ease and economic recovery should lead to a robust stock market resurgence in
2002 -- perhaps the strongest performance over the last five years. |
