Weak Dollar, Strong Wall Street

2007 US growth is weakening. But the courses inspire strong consumer spending, corporate profits and falling interest rates. Digital cameras for children, I-pods, or the new Sesame Street Pupe Edris-are the sales hit according to accountants Ernst & young for the Christmas season. Buzzing the paragraph: the Americans spend 6.5 percent more money than in the previous year and the good situation on the labour market take care of consumer mood. This message can use the U.S. economy. Due to falling real estate prices and weak car sales currently wields strong headwind: according to opinion of many economists is slowing the growth of 3.3 percent in 2007 to two to 2, 5 percent in 2008.

But a recession is not to worry about also because the Central Bank operates. For 2007 we expect that the U.S. key interest rates by 125 basis points decline”, said Jan Hatzius, Chief Economist at Goldman Sachs. This would make shares compared to fixed-term deposits or bonds more attractive, and lead to a strong price rally. Skeptics expected to the collapse of real estate prices plummeting consumption. But the Americans not deteriorated so far in panic. Over the summer 2006 sharply lower gasoline prices contribute, according to Goldman Sachs to consumers in 2006 around $90 billion spending saved.

Job-seekers in the land of rags and millionaires will also find slightly new jobs: the unemployment rate is at a low 4.4 percent. Investors also put their hopes on Federal Reserve Chairman Ben Bernanke, not to war small consumers in the U.S. and robust growth in commercial real estate. Also, the financial professionals are optimistic: in a recent survey among more than 100 portfolio managers almost two-thirds of the participants described themselves as bullish. At least one-third of all respondents see the leading index 2007 the record mark of 13 000 points. There are good reasons for optimism: absolutely seen the U.S. companies increase their profits continue. According to prognosis of the Finanzdienstleisters Thomson finacial they grow by 10 percent this year. Source: Capital.de

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