Wednesday, August 15, 2007

8/15/07

Economics

The consumer price index for July was reported up .1%, in line with expectations; the core number was up .2%, also in line with expectations. The reported statistics continue to confirm our forecast.

Politics

Domestic

International War Against Radical Islam

In case you missed this in the morning news; the escalating confrontation with Iran:

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/14/AR2007081401662_pf.html

The Market

Technical

The major indices banged through their support levels (DJIA 13200 and S&P500 1449). The question for us is, will they rebound tomorrow? If so, that would constitute another successful challenge of those levels--which we would view as a positive. If not, next stop DJIA 12855 (and the next support below that is 11982) and S&P 1359.

Hang on to your cash. Continue to avoid the financials. Remember our annual income is growing even through this current mess; and our Price Disciplines will save us from large losses and as well as point us to buying opportunities when we return to an orderly Market.

Fundamental

More on the sub prime mess from Barry Ridholtz:

http://bigpicture.typepad.com/comments/2007/08/ratings-agencie.html

News on Stocks in Our Portfolios

A positive write up on General Dynamics (Dividend Growth Portfolio):

http://www.zacks.com/rank/zcommentary/?id=5687

More Cash in Investors’ Hands

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