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U.S. Economy
by Manpreet Hochadel, CFA
JPMorgan Investment Analytics and Consulting

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Initial estimates of growth at an annual rate of 4% in the second quarter were significantly better than expected primarily due to better-than-expected export figures and solid corporate spending. Forecasters, however, remain concerned that the decline in the housing market and the upheaval in the U.S. sub-prime mortgage sector will dramatically slow growth for the rest of the year.

U.S. Equity Markets
by Manpreet Hochadel, CFA
JPMorgan Investment Analytics and Consulting

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After the technology sector burnout in mid-2000, value stocks have gained 6.6% annually, compared to a loss of 2.6% annually for growth stocks.^* Some forecasts are calling for a turnaround for growth stocks, given the dramatic narrowing of the valuation differences between growth and value sectors.

^*July 2000 through August 2007 monthly returns, annualized.