In This Issue:
The Outlook Is Better For An Improving Economy
Profit Growth Can Be Misleading
Big Companies Still Have An Advantage
Emerging Countries Are Making A Strong Recovery
Two Long Term Dividend Payers Look Good
Fasten Your Seat Belts, Oil Prices Are Roaring Back
The Bottom Line This Week
It's
been a bear market for bears recently as their many doom-and-gloom
pronouncements have gone wanting. The old bull just won't quit, despite all the
logical arguments that predict his demise. It's a good lesson that paying
attention to what is actually happening in the stock market is more profitable
than following theories. Mother Market always has the last word.
The
numbers tell the story. Since our last letter on July 29, the Dow and the
Nasdaq have gone up 5.2% and 2.9% respectively. In only one of the four weeks
did the market slide into negative territory, and then by less than 1%. By
contrast, the best week registered a 7.3% gain. That's the sort of tailwind we
like to have.
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