Econ Update GDP fell a revised -6.3% (from -6.2%) for

4th Quarter 2008 Economists are forecasting a -5.1%

decline for 1st quarter 2009 New orders for core capital goods rose

6.6% in February (likely a correction from Dec and Jan declines)

Sales of New homes rose 5.1% in February (MoM) but down 38% since 2/08

Econ Update Sees the S & P rally due to the economic

data and what seems to be new liquidity in the marketplace (due to government actions)

Government Intervention PPIP program released details last week,

the program calls for private investors to invest equity capital on an equal-dollar basis with the Treasury

PPIP is estimated $1 trillion in loans will be purchased under the PPIP program.

Econ Update The financial sector was the best

performer last week (10.42%) The utility sector was the worst (1.68%)

Phase PLUNGE phase Look at financials, financial services,

basic materials, consumer discretionary, and consumer staples

HAS NO FEARS OF DEFLATION

Up Next Friday: Non-farm payroll is released (BC

believes this is important) Friday: ISM Services Index is released

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