Downturn shallower than expected

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By James Abate, a US fund manager at GAM The downturn to the economy following the 11 September ...

By James Abate, a US fund manager at GAM The downturn to the economy following the 11 September tragedies was far shallower than we expected, particularly in terms of consumer demand. Initially we believed that the economy had compressed an eighteen-month soft landing into a short-term sharp recession. We felt the fourth quarter of 2001 would be the bottom of the valley and investors would look beyond it in determining intrinsic values for equities. Our enthusiasm for the market was tempered due to high valuation levels in key index sectors such as technology, financials and health...

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