By Evelina M. Tainer, Chief Economist, Econoday
3/16/01

Economic indicators were sparse most of the week and even Fed officials were relatively quiet. Nevertheless, investors seem to be more concerned than ever about the outlook for corporate profits. In sharp contrast to 1999 and early 2000, irrational exuberance is now over. Investor psychology is extremely bearish. Economic indicators are on the anemic side, although only manufacturing is in outright recession. Perhaps the figures aren't weak enough to heighten expectations for aggressive rate easing by the Federal Reserve. In any case, market participants are expecting an aggressive rate cut on Tuesday after the FOMC meeting.