Economics
fiscal profligacy (Government spending as a percent of GDP is too high and the looming explosion in entitlement expenditures will make it worse. There is no good solution save spending discipline.) The endlessness of pork:
http://news.enquirer.com/apps/pbcs.dll/article?AID=/20071002/NEWS01/710020331
Politics
Domestic
International War Against Radical Islam
The Market
Technical
Fundamental
News on the Street is that the Kohlberg, Kravis/Texas Capital buyout of TXU ($32 billion and the largest buyout deal to date) will be closed by the end of the month. This follows the successful completion of the First Data deal (no small transaction itself). The point being that huge transactions that couldn’t get financed 30 days ago are now closing and that is further evidence that liquidity is returning to the financial markets--which is a positive for stocks, in general, and financial stocks, in particular.
While I am not inclined to chase stocks at current price levels, SSI Portfolios own Citigroup (High Yield Portfolio), ASTA Funding (Aggressive Growth Portfolio) and US Bancorp (High Yield Portfolio) and they all remain on their respective Buy Lists.
EPS: 2006 $4.25, 2007 $4.55, 2008 $4.95; DVD: $2.16 YLD 4.7%
http://finance.yahoo.com/q?s=C
EPS: 2006 $3.23, 2007 $3.57, 2008 $4.00; DVD: $.16 YLD .4%
http://finance.yahoo.com/q?s=ASFI
EPS: 2006 $2.61, 2007 $2.60, 2008 $2.80; DVD: $1.62 YLD 5.2%
http://finance.yahoo.com/q?s=USB
A pro’s Market analysis:
http://www.seekingalpha.com/article/48710-why-are-stocks-rallying
News on Stocks in Our Portfolios
More Cash in Investors’ Hands
No comments:
Post a Comment