A massive rise in durable goods order may boost dollar and stock market but economy suffers from lower consumer and business confidence
Karen Zuba
Mar. 28, 2007

The durable goods order will rise sharply from a depressed level last month. The rise is cyclical and will be short-term boost for the stock market and perhaps a relief for dollar index. But the economy is suffering from long-term problems. The lower consumer and business confidence are the root causes of deflation.

The deflation is getting bigger every day. People are finding difficult to make both ends meet. They are struggling not to lower their standards of living. They cannot borrow any more from their homes to support their small businesses and lack of cash flows.

The effect on the Dow is real bad. The deflation can take Dow below 7.000 before the end of 2009. The dollar will get a boost from the durable goods order report.

A massive rise in durable goods order may boost dollar and stock market but economy suffers from lower consumer and business confidence
Karen Zuba
The rise is cyclical and will be short-term boost for the stock market and perhaps a relief for dollar index. But the economy is suffering from long-term problems.
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