When the economy suddenly has more money circulating around there is the threat of inflation. "The Federal Reserve is expected to hold its main short-term interest rate at a 45-year low of 1% at its last meeting of the year in December, as well as into part of 2004, economists predict. Holding short-term rates at such low levels might motivate consumers and businesses to spend and invest more, something that would lift economic growth." (Aversa)

Methodologies

The national debt crisis has required a new look at corporate America in regard to valuing the risks and returns of companies and instruments. Many investors apply the Warren Buffet philosophy. Buffett seems to believe that thorough analysis of each company, patient purchasing at the lowest possible price and holding for the long-term will weed out the dogs. Warren Buffet is one of the richest men in America with probably only Bill Gates ahead...
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