May 3, 2001
The Domino Effect of the U.S. Downturn
As we've been saying for weeks, the current economic slowdown in the U.S. will soon be exported to the rest of the world. U.S. growth in the past decade has been driving global growth, but now this growth has come to a screeching halt. And when the slowdown hits the rest of the world, it will create a backlash that will hit the U.S. economy full force.
All 30 companies in the Dow are multinational in scope -- so, as the economies of Asia and Europe falter, gaping holes will begin to appear in U.S. corporate earnings as overseas sales decline. Plus, the health of the U.S. economy depends heavily on foreign investments- overseas investors own close to $1.2 trillion worth of U.S. treasury securities. If these investors start withdrawing funds from the U.S., we are in trouble!
® 2001 Weiss Incorporated
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