Friday, August 24, 2007

8/24/07

Economics

More insight into the sub prime problem:

http://bigpicture.typepad.com/comments/2007/08/cdo-insiders-we.html

Politics

Domestic

International War Against Radical Islam

The Market

Technical

Fundamental

A guest on one of the financial shows presented a chart depicting the average performance by month over the last 15 and 30 years of gold prices, i.e. the gold price performance of each January for the last 15/30 years was averaged, then each February, etc, etc. The bottom line is that in both cases during August gold prices hit their low for the year and then rebound sharply through the end of the year. We bring this up in case you haven’t yet established a position in gold (US Global Investors Gold Shares- USERX) as a hedge against the inflationary implications of (1) many of the policies being promoted by Presidential candidates, (2) the continued inability of the Federal government to reduce government spending as a percent of GDP, and (3) the unwillingness of that same political class to address the enormous inflationary pressures being created by entitlement programs. Based on the historical price movement quoted above, this is a good time to buy into that hedge.

This morning on the Market open, the Dividend Growth Portfolio is buying the second one half of its position in Federated Investors (FII-$34); and the Aggressive Growth Portfolio is buying the second half of its position in Amphenol (APH-$34).

News on Stocks in Our Portfolios

General Dynamics (Dividend Growth Portfolio) received a $2.5 billion contract from the Navy for the building of dry cargo ammunition ships.

More Cash in Investors’ Hands

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