News : News Releases : 2003-2004

January 2004

Executives tell SCU Business Index that Silicon Valley stocks will outperform the Dow and local real estate
Survey reflects upbeat national expectations, says SCU economist Mario Belotti

SANTA CLARA, Calif. – Jan. 28, 2004 – Stocks in Silicon Valley-based companies will outperform the Dow index and Silicon Valley real estate in 2004, according to the latest Silicon Valley Business Index released today by the Leavey School of Business at Santa Clara University.

The Santa Clara University Business Index, Silicon Valley Outlook, reported today that its January survey of Silicon Valley executives and managers shows 48 percent of its respondents expect greater growth from their Silicon Valley stocks than from either stocks tracked in Dow Jones indices or investments in Silicon Valley real estate.

“It’s another indication that managers see the region’s business improving,” said Mario Belotti, Keck Professor of Economics at Santa Clara University’s Leavey School of Business. “It follows the continued upward trend we’ve seen since March of last year.”

Respondents assessed current business conditions as better than they had predicted six months ago, including the availability of jobs. Belotti said that “although reports show some job growth nationally, with Silicon Valley lagging, the survey indicates an increased expectation that Silicon Valley jobs will begin to materialize shortly.”

Since February 2002, the SCU Business Index has asked managers and executives in a wide range of businesses in Silicon Valley to assess their business prospects for the next six months, and compared to the past six months, as well as current and future availability of jobs in their companies. It is managed for the Leavey School of Business by The Survey Company.

Complete SCU Business Index results and methodology for January and earlier months can be found at http://www.surveycompany.com/SCUBI/SVOutlook.html

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