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  • A Summer Rally Seems Likely

    In This Issue: Stocks Or Bonds, That Is The Question Greece Is Still A Big Concern A Summer Rally Seems Likely Housing Is Starting To Attract Investors The Market Is Expanding For Private Services The Bottom Line The stock market correction we have been...
  • A Second Nip From A Double Dip – The AIA Advocate Newsletter Week of 8/26/2010

    In This Issue:

    A Second Nip From A Double Dip
    Bonds Are Soaring, But Could Be A Bubble
    Blue Chip Discounts May Not Last Long
    Two Bond Substitutes Look Especially Good
    True Cash Returns Are Higher Than They Appear
    The Bottom Line

    Since our last newsletter in July, the economy signaled that it may not be doing as well as it was earlier in the year. The employment rate is failing to improve, consumer confidence is slipping, retailers are singing the blues, many manufacturers are reporting fewer orders, and July home sales plunged a disturbing 27%.

    As a result, many analysts are beginning to think the economy may be heading for another leg down – the dreaded “double dip.” If so, many stock prices have been pushed too high. Accordingly, investors have been pressing Wall Street’s down button of late. Since July 29, the Dow and the Nasdaq declined 3.9% and 4.9% respectively.

  • Association for Investor Awareness - Week of 01/14/2010

    In This Issue:

    The 2010 Economy May Be Stronger Than Expected
    The Bull Market Should Have Longer Legs
    Our Recommendations Remain Very Attractive
    Earnings, Earnings, Earnings!
    Interest Rates, Interest Rates, Interest Rates!
    Stick With Short-Term Bonds & CDs For Now
    Rental Real Estate Is Starting To Look Good Again
    The Bottom Line This Week

    Last year the stock market reminded us of a Phoenix rising from the ashes. After suffering a devastating 18 month slide, stocks began to rebound on March 9. By the time the closing bell for the year rang on December 31, the Dow and the Nasdaq were up 18.8% and 43.9% respectively. How nice it was!

    It is instructive to notice that most of the market's gains occurred while the economic outlook was especially bleak. In fact, stocks started to turn back up at the same time several economists said the outlook couldn't be worse.

    Savvy investors, of course, realized that if the economy could not be worse then the slide must be over. Additionally, any change from 'worse' could only be positive. As we reported at the time, smart money was starting to buy stocks, and the rest -as they say- is history.