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Have You Seen This?

Have You Seen This?

  • Week of 08/21/2008

    In This Issue:

    Inflation Spike Seems Unlikely To Last
    The Dollar Rally Gathers Strength
    Russians In Georgia Have Investors Spooked
    The Outlook Is Good For U.S. Defense Companies
    In A Low Yield World, Dividends Shine
    The Bottom Line This Week

    The stock rally lost some ground last week which made many investors worry that the run may be coming to an end. That fear was justified since the main engine behind the rally -falling oil prices- continued to play their part. Even with oil moving down to the $112 range, the Dow fell 0.6% for the week.

    Small stocks moved in the opposite direction to their larger cousins as the Nasdaq posted a 1.6% advance. In its own way, the small stock upturn also made investors nervous. The bounce was another in a long list of confusing situations that are at work in the market today.

    ...
  • 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.

    ...