7/17/07

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.) Congress has finally found a bureaucracy whose budget they can cut; but you won’t believe which one. Well, maybe you will.

http://www.opinionjournal.com/diary/

Politics

Domestic

International War Against Radical Islam

The Market

Technical

Fundamental

This morning the Aggressive Growth Portfolio is buying additional shares of US Global Investors Gold Shares (USERX) taking that position to a 1 ½ sized holding. This basically reflects our continued unease with the domestic/international political environment along with rising oil and material prices and a weak dollar.

News on Stocks in Our Portfolios

A.J. Gallagher (High Yield Porfolio) is acquiring Spanjers Insurance Agency, a retail insurance broker.

EPS: 2006 $1.40, 2007 $1.75, 2008 $1.85; DVD: $1.24, YLD 4.3%

http://finance.yahoo.com/q?s=AJG

Coca Cola (Dividend Growth Portfolio) reported second quarter operating profits per share of $.85 versus expectations of $.82 and $.76 recorded in its 2006 second quarter.

EPS: 2006 $2.37, 2007 $2.60, 2008 $2.85; DVD: $1.36, YLD 2.6%

http://finance.yahoo.com/q?s=KO

Johnson and Johnson (Dividend Growth Portfolio) reported second quarter operating earnings per share of $1.05 versus expectations of $1.00 and $.98 reported in the last year’s second quarter.

EPS: 2006 $3.76, 2007 $4.05, 2008 $4.35; DVD: $1.62, YLD 2.6%

http://finance.yahoo.com/q?s=JNJ

US Bancorp (High Yield Portfolio) reported second quarter earnings per share of $.65 versus expectations of $.67 and $.66 recorded in the second quarter of 2006.

EPS: 2006 $2.61, 2007 $2.65, 2008 $2.85; DVD: $1.62, YLD 4.9%

http://finance.yahoo.com/q?s=USB

Market Analysis

More Cash in Investors’ Hands

Dow Jones has tentatively agreed to be acquired for $5 billion in cash.