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Backside-up evaluation: Company-particular evaluation— by way of individual security selection—can identify unique traits in particular person firms that may outweigh the affect of the standard enterprise cycle pattern on that firm’s future efficiency.

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With the catalyst created by falling long-time period interest rates, economic growth accelerated all through 1993 and into 1994, reaching a frothy 6% annual fee by the fourth quarter of 1993. Determine 7-9 shows the situation as the U.S. economic system entered 1994.