Brian Wesbury and Bob Stein of First Trust Advisors still see better days ahead—and soon!:
In our view, the economy has been slow in the first half of 2008 due to an almost irrational level of fear and risk aversion. This risk aversion can be seen in very rapid growth in money market mutual fund assets—from $2.4 trillion a year ago to roughly $3.5 trillion today. ed rate cuts, which are likely to end this week, have temporarily created a self-fulfilling prophecy of economic slowness, as some businesses and consumers postpone activity until they are confident rates have hit bottom. But that scenario makes us confident in a sharp rebound in the second half of the year. With rates days away from their bottom, the full force of the Fed's loose monetary policy is about to be unleashed. Faster growth is just around the corner.