In This Issue:
Tensions Between The U.S. And Russia Are Serious
Oil And Commodities React To The Threat
Defense Stocks Look Even Better Than Last Week
And So Does The Dollar
Inflation vs Deflation Contest Heats Up
But Inflation Should End Up With The Gold
The Bottom Line This Week
Last
week the stock market revealed that it has more underlying strength than world
events would seem to justify. If the market is once again acting as a leading
indicator of the future, the outlook is brighter than is generally supposed.
Despite
the fact that a new cold war seems to be underway, the Dow was only off 0.3%
last week. The Nasdaq declined 1.5%. The market dropped 242 points when it
reopened on Monday, but it regained nearly half the loss on Tuesday and
Wednesday.
Our
feeling is that investors want to be buyers and can only be held back by
disturbing news. That's a big difference from a bear market mentality when bad
news drives prices and good news is ignored.
...