Monday, February 4, 2008

The Eye of the Storm

excerpts form this week's report:

"Perhaps they haven’t felt it quite yet but the stock market bears should study yesterday’s Super Bowl for they risk looking a lot like Tom Brady – under siege.

As noted in Friday’s blog posting, the odds of a US (and potentially global) recession this year have diminished thanks to the stimuli from the US government and the Fed’s aggressive rate cuts. What this means is twofold:

• US equities should not be priced for recession, which means prices can...
• The economic effects from the stimuli appear to have a limited shelf life creating..."

Investment Strategy Implications

"The Model Growth Portfolio’s fully invested position reflects the view that equities are undervalued and higher prices should occur. While the global growth story may not produce a complete decoupling, last week’s economic reports..."

"As for the technical picture, it is debatable that we have entered a bear market. For example, much has been made by many market technicians that the Dow Theory has produced a sell signal. I beg to differ on this point, as the chart below (see report)..."

also in this week's report:

* Expected Return Valuation Model
* Moving Averages Scorecard
* Model Growth Portfolio
* Sectors and Styles Market Monitor
* Key US Economic Indicators

*To gain access to this week's report (and all reports), click on the subscription information link to your left.

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