The weak dollar should increase our GDP, at a pretty signifiant level, giving a false indication of Growth. Large cap multi-nationals are the best play here. IMO… GE, AIG, MSFT. (I really like AIG, although it appears its correction will be more exaggerated than I thought it would be. Thought the 20SMA would hold, but 68 maybe the support.)
The latest economic data out (ISM) is obviously indicative of a slow down. But recently the media compares the number to those of April 2003. Even though the number are/were weak, in March of 2003 the bull market we are currently in started.
I guess my point is, these data points mean nothing and it is giving an excuse for the market to consolidate a bit. I still think the relavent number is the productivity one. (That is the one that will dictate whether or not rates go higher.)
