Four-For-Four

September 20, 2001
Marc Dupee

Stock prices are down for the fourth consecutive day
since the market re-opened after its longest period of closure since
1933 following last week’s terrorist attack. Blue chips are leading the
slide, following through on their biggest point loss ever on Monday.

Slumping economic data and negative comments by Fed
Chief Greenspan regarding the economy’s short-term prospects are also
weighing on stocks.

The Dow is down 308 at 8450, the S&P 500 is down
27.08 at 989.21, and the Nasdaq is off 46.84 at 1480.95.

Housing starts fell 6.9%, coming in much weaker than
many economists were expecting, and followed a downwardly revised figure from
July. Housing and consumer spending were among the few pillars supporting
economic growth.

Speaking before the Senate Banking Committee,
Greenspan said, “The shock of Sept. 11 markedly raised the degree
of uncertainty about the future.” Greenspan confirmed that
“economic activity ground to a halt last week,” underscoring the
market’s perception that the economy will likely slip into recession in
coming quarters due to the downturn in economic activity and impeded
transportation and international trade in the wake of the attack.

A select few engineering and medical/ biotech stocks
are making gains.

Airlines have announced over 100,000 layoffs this
week alone. President Bush is in talks with airlines about possible
emergency funding of $5 billion and is in discussions for the government to
assume liability relating to possible security breaches.

Four-For-Four

BUY THE FEAR, SELL THE GREED

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