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Holiday Forecast for 2003
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In our holiday forecast for 2000, we correctly predicted that no Y2K crisis, apocalypse, or even recession would occur. Unfortunately, our forecast for 2003 is not so rosy. Rather, 2003 will be the year of Transition, Reassessment, and Opportunity.

To position for sustained prosperity during challenging shifts, DO:
  • Identify opportunities to redevelop obsolete retail centers into for-sale housing and/or mixed-use developments.
     
  • Find office building bargains in major metropolitan areas as office space vacancy rates ratchet up.
     
  • Consider development in low-cost metropolitan areas near high-cost housing markets, particularly locations such as Baltimore and Riverside County where military contractors operate.
     
  • Begin to plan and obtain entitlement for large-scale residential projects to come on line in 2004.
     
  • Purchase stocks at their bargain basement levels.

DO NOT:
  • Expect anything but a weak economic recovery in 2003.
     
  • Rush to buy apartments at today's capitalization rates. Low-cost mortgages will open doors for renters to purchase homes.
     
  • Invest in new senior housing projects planned to come on stream before late 2004. Local governments have encouraged these projects to the point of market saturation. Plus, "seniors" have been particularly hard hit by the stock market fall.

Years before high-end kitchenware stores sold tools for pitting cherries, in tough times many of us were told that "the world is not a bowl of cherries with the pits removed." We recommend that you begin pitting those cherries in 2003 so you can enjoy a bowl of pitted cherries in 2004.


image of 2003's annual holiday card




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