INVESTING BY THE STARS

2002 GLOBAL MARKETS


Fed's interest-rate cuts take between six and nine months to make their way through the economy.
Its first rate cut was on Jan. 3, so that reduction wouldn't show up in economic activity until July at the earliest.

Our forecast for 1Qtr 2001 was 1.2 and 2Qtr 2001 forecast of 0.45 was also good.
Our first forecasts for the next year follows:

3qtr 2001     -2.40
4qtr 2001    + 0.74
1qtr 2002     -1.89
2qtr 2002     + 1.56
3Q 2002       <2.5% [2.14?]         


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