Monday, September 17, 2007

"The Fever Will Break. It Always Has."

excerpts from this week's report:"

"So said the Maestro during yesterday’s 60 Minutes interview referring to the current credit squeeze. And despite the run-on-the-bank visuals of British depositors of Northern Rock standing on line, passbooks in hand, the growing impression from this desk can be summed up in two words – Old News. In fact, we seem to getting to the point where it's time to say, in the words of the Chris Matthews show, “tell me something I don’t know.”

"Without a doubt, other shoes will drop. But it’s going to take a very big shoe (global growth slowdown, for example) to impact the overall market. Anything less will simply damage the affected area in question and not likely bleed into sectors of the global economy. "

"The large economic issue is Decoupling. That is now the key area to focus on. It is about to get its long awaited test. All indications point to a US economic slowdown, or worse. The US consumer will likely cut back spending. But the investment strategy question to answer is “Just how much does that matter?"..."

"Model Growth Portfolio re-balancing:
-2% Consumers Staples
-2% Oil Equipment and Service
-1% Gold

+2% Homebuilders
+1% each Telecom and Utilities
+1% Europe 350"

also in this week's report
• Valuation Model
• ETF Model Growth Portfolio
• Model Growth Portfolio re-balancing
• Key Economic Indicators

Note: To gain access to this week's report (and all previous reports), please click on the Blue Marble Research Subscription link to your left.

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