Weekly Economic Update ,
 WELCOME - Vol. 7 No. 1

TIMELY INVESTMENT INFORMATION - Weekly Economic Update
======================================================

Welcome !

For new and old subscribers, there is an Archive Section
on our website at: http://www.stockresearch.com/archive.html
It lists the original copy of each of our research reports,
at the time of publication.


=============================================================

PLEASE SUPPORT OUR SPONSORS
===========================

INVESTOOLS
==========

ALERT: New Buy Sign from Dan Sullivan on 16 High-Return Stocks

Buy signs from Dan Sullivan's The Chartist are few and far
between. And on-the-money for 30+ years - if you buy what
he buys. His 12/5/01 buy sign is a rare chance to join one
of the country's premier stock pickers. FREE trial:

 http://www.investools.com/c/go/CHRT/SR-chrtTN2?s=S602



INVESTOR'S BUSINESS DAILY - FREE TWO WEEK TRIAL OFFER
=====================================================

FREE TWO WEEK TRIAL to America's Fastest Growing Newspaper
and the FREE VIDEOTAPE "Maximizing Your Success." CLICK

http://ibd.infostreet.com/cgi-bin/freeoffer.cgi?source=ALA1GE2

            NO CREDIT CARD INFORMATION REQUIRED


============================================================

This is a text only copy that should be fairly well
formatted for most e-mail programs.  For those of you
that would prefer an easier to read format, simply click
on the link to our website, and if you want, print a copy.

       http://www.stockresearch.com/weekecon.html

============================================================

WEEKLY UPDATE FOR: January 5, 2002

Prior Week in Review:

Financial Market Highlights:
============================

                        01/04/02     12/28/01     %Change

S&P 500                 1,172.51     1,161.03       +.99%
Dow Jones              10,250.74    10,136.99      +1.12%
NASD Comp               2,059.38     1,987.26      +3.63%
Russell 2000              499.30       493.62      +1.15%
SOX Index                 589.89       538.79      +9.48%
Value Line                378.37       372.10      +1.69%
MS Growth                 562.43       568.96      -1.15%
MS Cyclical               551.56       535.61      +2.98%
T - Bill                    1.68%        1.68%       UNCH
Long Bond                   5.57%        5.54%      +3 BP
Gold - Oz-Near Month     $279.20      $276.80      +$2.40
Silver - Oz-Near Month     $4.65        $4.50       +$.15


Economic News:
==============

Good Economic News Continues - Stock Market Responds
 Economic Recovery A Given - Slope Still In Doubt
 Modest Recovery Best Bet - Could Disappoint Some


*Chicago Purchasing Managers' Index rose to 41.4
*Institute for Supply Management Index rose to 48.2
  From November's 44.5 - See Below
*November Construction Spending rose +.8% - Second
  Consecutive monthly gain
*Jobless Claims rose +36,000 to 447,000 - Four Week
  Moving Average fell -3,500 to 409,750
*December Auto Sales eased to 16.5 million rate -
  Actual 2001 was 17.2 million - Second Best Year
*Labor Department Employment Report - December
 - Unemployment Rate rose to 5.8%
 - Nonfarm payrolls fell -124,000
 - Average Hourly Earnings rose +$.07/hr to $14.61/hr
 - Average Workweek rose +.1/hr to 34.2 hr.


As longer term subscribers know, we have long been
forecasting an economic recovery to be underway by
Spring.  Recent economic reports strongly support that
outlook, and other market participants became converts
last week, particularly given the strength in the
Institute of Supply Management's Index (formerly
known as the National Purchasing Managers' Index). And
the stock market responded positively.  For us, though,
the issue is now the slope of the recovery, which has
important market implications, at least in our opinion.

Assuming no serious exogenous event, our best bet is
for the resumption of modest economic growth, beginning
with a slightly positive first quarter, and accelerating
as the year progresses to somewhat over 3%.  We would be
pleased if that scenario plays out, but others won't,
as they are expecting a faster recovery, and a stronger
second half.  And, the disappointment would likely fall
hardest on those economically sensitive stocks which have
been bid up most recently.

Our rationale starts with the obvious - the recession,
and we are assuming it is about over so we will use the
past tense, was short and shallow.  Short and shallow
leaves less room for a "snap back" as consumer spending
really did hold up very well last year.  And, as you all
know, the consumer drives approximately two thirds of
economic activity.

While it had appeared that the labor markets were improving
nicely, and even though the latest Labor Department Report
was better than expected, the recent softness in the jobless
claims report implies that labor markets will not recover
quickly.  This is not terribly surprising, as the labor
markets lag economic activity, but it does support our view
that the early stages of recovery will likely be modest.

Further out, the role of the Federal Reserve Open Market
Committee (FOMC) becomes important.  Their next meeting is at
the end of the month, but given what we know now, it would
be very unlikely to have a further rate cut.  Best bet now
is no change, and removal of the easing bias.  But the real
issue is how quickly they raise rates, given the unprecedented
reduction over the past year.

Recently there has been some dissension at the FOMC.  Some
members believe they have moved too far too fast, so they will
be looking to "take back" some of the cuts quite quickly.
Chairman Greenspan, though, will likely be more tolerant given
his strongly held belief that productivity improvements are
real, and sustainable.  Complicating the issue still further,
is that voting members have changed.

At the moment, our view is that they will move fairly quickly
to nudge rates slightly higher, to maintain their image as
foes of inflation, particularly if the reported inflation numbers
tick up, or productivity figures deteriorate.  If we are right,
that might bother the markets some, but the economic impact of
moving rates up from such low levels should be minimal.  The
real problem would arise if the appearance was that a series of
rate increases would push short rates above 3.5% - 4.0%.  For
now, not a concern.  But, going forward, an issue.

Simply put, inflation is bad, very bad, for financial assets.
The latest year-over-year increase in average hourly earnings
was +4.2%.  But, that is at the end of a recession, so wage
pressures will likely build.  Hopefully Greenspan is right, and
productivity can improve at a 3.5% - 4.0% rate, reducing the
inflationary threat significantly.

My intent is not to be alarmist as the stock market and economy
recover.  However, for the end of a recession, not only are
wage pressures real, but stock market valuations, using the FRB's
own model, at year end were slightly overvalued already. So,
stay tuned as 2002 should be a very interesting year !



Current Weekly Calendar of Economic Data:
=========================================


Monday:
Tuesday:        Factory Orders, Consumer Credit
Wednesday:
Thursday:       Jobless Claims, Wholesale Trade
Friday:         Producer Price Index



Fresh Money Buys:
=================

In response to subscriber feedback, we have established this
section to highlight recommendations from our list that we
believe are the most attractively priced currently.  We will
limit the selections to three each week, even as our list of
recommendations changes.

American Int'l Group (AIG)                     $77.80
Fannie Mae (FNM)                               $78.45
Pfizer Inc. (PFE)                              $39.40


Original reports from the time of recommendation, are
         available on our Website at:

    http://www.stockresearch.com/archive.html


You may obtain a "second opinion" from VectorVest, a service
that provides limited access free so you may try their
service at:

    http://www.stockresearch.com/vv.html


We will not track the performance of this list as we are
already monitoring the original recommendations.  Hope
this helps.

**************************************************************

INDIVIDUAL MANAGEMENT FOR EVERYONE
==================================

For everyone who has enjoyed reading our newsletter but has
not had the $200,000 required for our personal, individual,
asset management services, we have an incredible announcement
to make: Green Mountain Asset Management Corp. and
BridgePortfolio.com of Chicago, IL have created an alliance
where you can now invest in the Green Mountain Asset Growth
Portfolio through BridgePortfolio with a low minimum of
$10,000. Your individual account will be set up at Schwab
Institutional, which gives you 24 hr. web access. Green
Mountain Asset, as a sub-advisor, will instruct
BridgePortfolio what to buy and sell. BridgePortfolio.com, as
your investment advisor, will execute trades on your behalf
only in accordance with our instructions.

       Simple as that!  Click here for more details.

  http://www.bridgeportfolio.com/index.asp?RelCode=GM4005VT

Or call 800-610-8882  Monday thru Friday-9:00 am-5:00 pm CST

**************************************************************

CLASSIFIED ADS
==============

PARIS VACATION RENTALS - Apartment on Historic Ile Saint Louis
    Better Plan Ahead - Only One Month Left For 2002
         http://www.paris-vacation-rental.com

AT ANY COST:HOW AL GORE TRIED TO STEAL THE ELECTION - Only $19.56
http://www.amazon.com/exec/obidos/ASIN/0895262274/greenmountainass

BIAS: A CBS INSIDER EXPOSES HOW THE MEDIA DISTORT THE NEWS -$19.56
http://www.amazon.com/exec/obidos/ASIN/0895261901/greenmountainass

THE THEORY OF INVESTMENT VALUE - John Burr Williams - Only $29.95
http://www.amazon.com/exec/obidos/ASIN/087034126X/greenmountainass

BASIC ECONOMICS: A CITIZEN'S GUIDE TO THE ECONOMY - Only $21.00
http://www.amazon.com/exec/obidos/ASIN/046508138x/greenmountainass


**************************************************************

SURVEY
======

It would really help us if you would take our brief survey, so
that we have a better understanding of our users and so that
we can sell targeted advertising, which keeps our services
free to you. A benefit to you and us.  So, please take just
two minutes to fill out a 13 question survey.  There is no
information requested to identify you personally as our only
interest is in the aggregate data. Thank you very much for
your help !

http://38.148.250.3/cgi-win/client.exe?readers,welcome,ad1321a,2000

To return here, after you have completed the survey, File
Close works better than the method suggested at the
survey site.

**************************************************************

As we continue to build both our Newsletter and our Website,
we welcome your feedback, so please feel free to e-mail me at:
mailto:bobbose@stockresearch.com

To UNSUBSCRIBE, just send an e-mail to:
timely-invest-off@mail-list.com
Be sure to use the e-mail address from which you subscribed.

To SUBSCRIBE, just send an e-mail to:
timely-invest-on@mail-list.com

To CHANGE, put either your new or old e-mail address in the
subject line and the other address in the from line and send to:
timely-invest-change@mail-list.com

DISCLAIMER:
===========

The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy or
sell any security. It does not purport to be a complete
description of the securities, markets, or developments
referred to in the material. All expressions of opinion
are subject to change without notice. The information is
obtained from internal and external sources which we
consider reliable but we have not independently verified
such information and we do not guarantee that it is
accurate or complete.  We do not undertake to advise you
to any changes in figures or our views.  We, our employees,
clients, and or officers and directors, may from time to
time have a long or short position in the securities
mentioned and may sell or buy such securities.




--
Bob Bose
Green Mtn. Asset Mgt. Corp., 139 Bank Street, Burlington, VT 05401
FREE Investment Newsletter - http://www.stockresearch.com
FREE Trial Investor's Business Daily
http://www.stockresearch.com/ibdform.html
800 - 385- 2673 / 802 - 658 - 7806



----------------------------------------------------------------------------------
To subscribe,   send a blank message to timely-invest-on@mail-list.com
To unsubscribe, send a blank message to timely-invest-off@mail-list.com
To change your email address, send a message to timely-invest-change@mail-list.com
   with the other address in the Subject: line



This message was launched into cyberspace to alewis@enron.com
alewis@enron.com