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Schools Industry Rises 10 Percent in 100 Days

QualityStocks (July 9th, 2008) Writes:

The three months ended June 2008 have not been the best for any stock exchange. The S&P 500 has lost a hefty 8 percent during this brief interlude. The services sector has declined by a similar amount as well. However, one of its members has bucked the trend. The schools industry has registered a sharp rise in the last 100 days. Is this the beginning of a new trend? This would be welcome news for investors wary of market volatility.

Education is good business. It matches health care in social significance. Education is also a great leveler. It is the best hope for children from economically depressed communities. State-sponsored educational facilities do not meet all demands. This has spawned a robust industry for teaching in a business format.

There are some 26 listings from the schools industry in various stock exchanges. Small-capital stock options dominate the scene. This suggests that the industry

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Is this a recession and do we care?

James Hamilton (June 7th, 2008) Writes:
Article Source Could well be, and yes you should. There is no question that we've been experiencing an episode of economic stagnation in which key indicators of output and employment are not growing at their usual historical rates. Some analysts take the position that this is all that really matters, and whether it meets the formal definition of a "recession" is a pointless question of semantics. In support of such a position, there are a number of economic models quite popular among academics today that would warrant just such a perspective, in that they presuppose linear dynamic systems in which a "recession" is indeed just an arbitrary definition you would make up to characterize a string of bad luck. I espoused the opposing view in a recent academic paper. I argued that recessions represent distinct and objectively identifiable episodes in which the usual dynamic factors that ...

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