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Backside-up evaluation: Company-particular evaluationâ€” by way of individual security selectionâ€”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.