In This Issue:
No Direction Home
The Inflation/Deflation Balance Is Precarious
Top Investments For Core Portfolios
Africa: Sleeper Investment Of The Century
The Bottom Line This Week
Since our last issue, the stock market roller coaster made several more trips around the track. At this writing, prices are nearly back where they started with the Dow up marginally 0.3% and the Nasdaq off 0.7%. Although the market appears to be taking a breather at present, we think investors should expect a volatile summer.
No Direction Home
The stock market's gyrations reflect similar moves in most economic indicators. Not only are the key signals mixed, they often change direction from one week to the next.
It doesn't help that every few days or so another black swan shows up to make investors nervous. The most recent unwelcome incidents include the disastrous BP oil gusher in the Gulf of Mexico, the high profile raid on the Gaza "peace" flotilla, the torpedoed South Korean patrol ship, and the plunging euro. There is a growing feeling among millions of people that political and economic stability in many parts of the world are hanging by a thread.
At the same time, however, many multinational companies are reporting very good earnings. In addition, consumers are still paying visits to the mall although they are being more careful with their money. The summer vacation season is also off to a good start. In short, much of the evening news is grim but the day to day reality for most Americans is pretty good.
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