Sunday, January 28, 2001

Expert: U.S. economy facing hiccup


Long-term outlook good, 600 locals told

By Amy Higgins
The Cincinnati Enquirer

        As in the United States in the 1920s and Japan in the 1980s, there's now an economic slowdown in this country because of rising interest rates.

        But there won't be the kind of crash that crippled those economies in the 1930s or 1990s, respectively, said Frank Cappiello, keynote speaker Saturday at The Cincinnati Enquirer's Financial In dependence Day.

        Mr. Cappiello, a Wall Street guru best known for his appearances on PBS's Wall $treet Week with Louis Rukeyser, spoke to a crowd of about 600 attendees at the Northern Kentucky Convention Center. He said what makes the United States different in the 21st century is its superpower status.

        “The global economy depends on the United States,” he said. “It's the United States that drives the world.”

        The market during 2001 should still see some effects of last year's rising interest rates, even though the Federal Reserve has started to lower them. The market tends to lag such changes by about nine to 12 months.

        But over the long term, the United States should expect continued economic strength for at least 50 to 70 years, judging by historical economic superpowers like the British Empire in the 1800s.

        “We have nothing to fear for quite awhile,” Mr. Cappiello said.

        David Combs had more short-term financial goals. The West Chester man attended the fourth-annual Financial Independence Day with his sister and his recently widowed mother. The family wanted to learn more about how to pass their assets from generation to generation.

        Of the 24 breakout sessions offered during the day, the Combs family attended sessions on estate planning and retirement investments.

        “We're living it,” Mr. Combs said. “A lot of people don't think about wills, and planning, and things — things we never thought we'd have to face.”

       



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