Is Real Estate Next?, by Shawn Tully, page 58
U.S. housing prices are stretching the outer limits of what's reasonable and sustainable. Instead of cooling down, prices keep hurtling upward, defying the laws of economic gravity just as grievously as dot-coms once did. In other words, reports Shawn Tully, what looks like a gift to homeowners today is potentially a recipe for disaster later. If the boom persists, housing will become so overheated it will put the entire economy into dangerous, fragile territory. In a year or two, prices would fall with a thud, unleashing a double-dip recession that would pummel home prices even more.

Fortunately, says Tully, it's still too soon to announce the B-word. For the nation as a whole, no bubble exists-at least not yet. And if housing acts sensibly from here, prices will adjust smoothly by dropping modestly in the strong markets and moving sideways for two years or so in most places. What that means, though, is that future returns on your home won't begin to approach the stupendous gains of the mid-1990s.

In a related story, The Property Master, Brian O'Reilly looks at Sam Zell, who controls more commercial real estate than anyone else in the country, and finds out why he isn't worried about the current real estate environment.

How Low Can It Go?, by Nelson Schwartz, page 81
What if the big rebound doesn't come for a long time? What if the occasional upsurges are overtaken by downdrafts that push the Dow down another couple of thousand points? Though not a pleasant scenario, this is exactly what a small group of perma-bears-strategists, money managers, and other market watchers-are quietly talking about these days. Nelson Schwartz provides a "field guide to the world of bears: a way of understanding the risks stocks still face and a primer on the fears that have caused the Dow to decline 22% in 2002."

The PC's Next Trick, by David Kirkpatrick, page 88
Why are the leaders of the PC industry so unenthusiastic about the PC? Their industry-one of the largest in the world, with annual sales of $150 billion and 125 million units shipped-is in terrible shape. The problem isn't just the economy: The time-tested formula for PC growth, in which the industry was driven forward by fast processors made by Intel and newer operating systems made by Microsoft, has broken down. David Kirkpatrick surveys the field, and looks at what Dell, Hewlett-Packard, Sony and Gateway are doing to re-invent their companies and move beyond the PC into other more profitable areas.

Stocks or Bonds Bill vs. Bill, by David Rynecki, page 89
Can bonds beat stocks for a third year in a row? FORTUNE interviewed two legendary fund managers--Bill Miller of Legg Mason Value Trust Fund, the only manager to have beaten the S&P; 500 for 11 years in a row; and Bill Gross of Pimco's Total Return Bond Fund, which boasts a ten-year average gain of 8.3%--to offer answers. But these two also offer surprising views on the state of the markets.

It's Time For Him To Go, by Jeffrey Birnbaum, page 99
With the stock market still in a deep swoon and the scandals continuing to attract headlines, investors desperately need to see that the SEC is serious about correcting the problem. But chairman Harvey Pitt has consistently given the opposite signal. As FORTUNE Washington bureau chief Jeffrey Birnbaum points out, his reversal on the hiring on John Biggs-a reform-minded pension fund CEO-to become head of an important new board to oversee the accounting profession only reinforces the view, both inside and outside of Washington, that Pitt is not up to the job.

The Seamy Side of Pension Funds, by Janice Revell, page 105
Pension funds hold $9 trillion in retirement savings for 75 million Americans. By some estimates, as much as $1 billion a year is being siphoned from the plans in inappropriate dealings. How could that be happening? The answer lies in understanding the roles of consultants, the powerful yet little-known gatekeepers who influence trillions of dollars in pension funds--and who, when acting as brokers, frequently compromise their objectivity.

GM's Slow Leak, by Janice Revell, page 105
Though sales are booming and the company is widely expected to hit its target of almost doubling earnings per share this year, GM is facing a vise-like financial squeeze in the coming years-with pressure coming from both ends of its balance sheet: assets and liabilities. Janice Revell examines the problems GM faces, from massive pension and health-care bills related to its retirees to the financing deals which, though good for customers, pose a long-term threat to its bottom line.

Fall From Grace, by Nicholas Varchaver, page 112
Mark Belnick, former chief corporate counsel at Tyco, is hardly a marquee name in this year's gala of corporate scandals. But it's precisely the limited scope of his alleged misconduct that makes his case a unique prism through which to view the epidemic of executive misbehavior. His is a story on a human scale, one that, more than anything, shows how even a handful of misjudgments can sink an illustrious career. Nicholas Varchaver looks at how a lawyer who was supposed to keep his client out of trouble now faces the very same trouble himself.

The Real Bubble Economy, by Christopher Redman, page 122
The Champagne region's terroir-the complex interaction of soil, microclimate, and topography that make the region unique-requires extra effort from man and vine alike, but the eponymous vintage that results is the world's benchmark for sparkling wine. Yet with strict rules limiting the amount of land entitled to grow grapes for Champagne, along with other restrictions, the region's popular product is very close to its production limit. As global demand approaches that limit, producers may soon find themselves on the winning side of the demand-supply game.

How Coach Got Hot, by Julia Boorstin, page 131
Just a decade ago, Coach was a sleepy division of Sara Lee known for making briefcases and handbags as indestructible as tanks-and about as stylish. But the company has gotten a full-body makeover that extends to its balance sheet. While most luxury-goods makers are floundering, Coach has been posting some truly astonishing numbers. Julia Boorstin looks at the company whose styles are dictated by what customers think is cool, and asks if it can maintain its sizzling growth if the economy continues to languish.

The Last Taboo, by Cora Daniels, page 136
A host of new studies and plenty of anecdotal evidence show that stress in the workplace is skyrocketing, and more than half the working people in the U.S. view it as a major problem in their lives. While some executives may talk openly about their problems with alcohol, sex addiction, depression and dyslexia, stress has become the last affliction that people won't dare admit to. Cora Daniels examines what people are doing to cope with a growing problem-and how stress management has become a $10 billion industry.

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Contact:

Carmen R. Wong
212-522-3412
carmenr_wong@timeinc.com

Caroline Plauché
212-522-2134
caroline_plauche@timeinc.com

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