Tuesday, September 4, 2007

September Swoon? Not Likely.

excerpts from this week's report:

"September has arrived and the Chicken Little/the Fed better cut rates crowd are in full force racing about the halls of Congress and publishing opinion pieces predicting dire consequences if the Fed doesn’t bailout bad behavior.

As the rest of the investing world continues to catch up to the credit derivatives risks that readers of this report and blog have been well aware of for quite some time, the dominant investment strategy issue entering the dreaded September/October time frame is whether the teeth gnashing, hand wringing, furrowed brows, “woe is us” lament, lookout below angst is warranted? Or is it a tad overdone?

Well, there are two facts that are hard to deny:

1. Throughout this bull market, September has not lived up to its boogie man image
2. Valuation levels are once again supportive of higher markets

On the first point,..."

"As for the second point, a look at the valuation model below (see report) makes it fairly clear that..."

"...to their credit, the markets are (finally) doing what markets are supposed to do from time to time – ferret out the bad decision making and excess risk taking and adjust the misalignment of values. In the process, change is underway and astute, cool-headed investors can exploit the opportunities such a changeable climate present..."

also in this week's report

• Valuation Model
• ETF Model Growth Portfolio
• Key Economic Indicators

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

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