The US economy confounded pessimists in the last few years and it will do the same for the year 2000. Business investment will remain strong and productivity will keep rising. Profits will grow and inflation will stay moderate. Unemployment will remain low. 2000 will be a good year for everyone from retailers to computer industry. The internet and e-commerce will grow at a dizzy pace again in 2000. Fasten your seatbelt, fellows! Most economic fundamentals look terrific. However, interest rate will go up due to the concern over inflation (which has never been a real threat, though). When interest rate rises, stock price can be negatively affected since it will cost companies more to borrow. Housing activities and home sales will decline. If you are in realestate business, keep a close eye on the direction of interest rate. On-line stock accounts will increase to 15 million in the year 2000, which means that a lot of people including young students with little cash do stock trade just for the sake of "tradeing." A great caution should be taken if you have equity (money in stocks) in 2000. Maybe sometime in summer or fall, who knows? A big major correction will wipe your money as well as your heart. Too many people have made too much money already on internet-related investments. If rate rises and people begin to question the vbalidity of their investment in technology (overpriced?), then people will begin dumping and this stampede will dump you too. But, you are the boss and you make decisions.

- 이근석 -