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AIA Advocate for Absolute Returns

Syndication

Have You Seen This?

Have You Seen This?

  • Week of 08/28/2008

    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.

    ...
  • Week of 08/14/2008

    In This Issue:

    Surprise! Oil Prices Can Plunge As Well As Soar
    Russia-Georgia Conflict Shows Oil Retreat Has Legs
    The Dollar Is Rebounding By Default
    We Know We've Said This Before, But "Buy The Bargains"
    The Bottom Line This Week

    Last week, the stock market continued to make the big swings that started several days earlier. This time, however, we were delighted to see that the pattern was skewed towards the positive. Thanks to a 332 point gain on Tuesday and another 303 point jump on Friday, the Dow and the Nasdaq ended the week up 3.6% and 4.5% respectively.

    Those were very nice numbers for a five day period, especially since poor economic news –and the Russian/Georgian war- continued to dominate the headlines. However, none of it could overcome the enthusiasm investors had for the recent plunge in oil prices that brought the magic $100 level within sight. If oil gets that low we will see rejoicing on both Wall Street and on Main Street. We might even raise a glass ourselves.

    Meanwhile, Mother Market is testing our resolve. After rising 49 points on Monday, stocks dropped 250 points through Wednesday. More gyrations are undoubtedly on the way.

    ...