' What makes a person decide to become a stockbroker?'
' When he realizes he doesn't have the charisma to succeed as an undertaker.'
The Professional Opinion
S&P 500 Index: 1020.62
LEI - Leading Economic Index
The LEI has improved for four months in a row now, with an increase of .6%. Real GDP should increase in this second half of 2009. Look for a range of GDP in the 2-3% range.
Six of the ten leading economic indicators also increased in the lst month. Capacity utilization rose by .4% and Industrial Production rose .5%, helped along by the Cash for Clunkers program.
The housing market appears to be stabilizing, with sales of existing homes leading the way with a 7.2% increase in July. Sales of new homes rose 9.6% in July and the average price for a home rose 2.9% in the second quarter versus the those in the first quarters.
Other Key Factors
Tight Money: There is none - the Fed has been very accommodative.
High Inflation: Can't see it with a telescope.
Rising Rates: Not in the near future.
Rapid Growth: There isn't any.
Overvaluation: Not anytime soon, The S&P is sitting in at a PE of somewhere around 14. More realistic going forward would be a multiple of 16-17 into 2010.
The cyclical bull market remains intact. Buy on the dips. Buying an oil stock or two on price declines is a good way to hedge against higher energy prices going forward. Bob prefers oil companies located in North America and producing oil in North America. A good place to start looking is in the province of Alberta, CA.
No, not an Alien - a Cicada Larvae