August 2010 - ProfitScore IQ

The ProfitScore IQ is our monthly newsletter in which we discuss the U.S. and global economy and trends we see emerging that can affect your investment success. Packed with invaluable insight and actionable information about the U.S. and global equity markets, The ProfitScore IQ lets you benefit from our research and the daily hard work that contributes to our never ending journey to be better stewards of your investment assets.

  • Cash Is Less Painful Than Doing Something Stupid

    In This Issue:

    A Brief Performance Update
    Hindenburg Omen - Riding a Lead Zeppelin?
    Looking To the Presidential Cycle
    Oily Omen
    More Transport Weakness
    Cash Collared Consumers
    Housing Holdouts
    Employment-Challenged Economy
    So what's next?
    Time to Put on My Coaches Hat & the BSU Broncos

    A lot has changed since my last letter.  Many aspects of worldwide markets have seemed to turn on a dime and are pointing to a volatile future.  Unlike my last few letters, there is no silver lining in my tone.  This letter will print longer than normal because of all the charts and graphs. 

    One of my favorite leading indicators on the health of the economy is the Growth Index from the Consumer Metrics Institute.  It does an astonishing job of taking the pulse of the American consumer.  Most other consumer based indicators are lagging by months, but this indicator gives weeks, and sometimes months of lead time - making it a very unusual and helpful indicator about the economic future.  If you are not familiar with this index, below are some helpful charts and comments to jumpstart your learning curve.  It is currently firing a thumbs down. 

    It seems like every data point we turn over we find nothing but slimy snails and worms, and my general comment after massaging the numbers is yuck!   When I think about the unconscionable amount of my children and grandchildren's future that has been mortgaged to produce the worst economic recovery since the Great Depression, it makes me want to pull my waste basket out from under my desk and purge my lunch.