Economics
Most the economic data reported during our absence was an improvement over what we had been receiving in the prior two weeks and hence supported our current forecast. That is encouraging.
Politics
Domestic
More on border security or the lack thereof (read this):
http://powerlineblog.com/archives/018175.php
International War Against Radical Islam
The Market
Technical
The Market reflected the better tone of the economic statistics last week. The key technical points to be watching now are on the upside--13690 on the DJIA and still 1527 of the S&P.
This website has lots of statistical data on Market performance. It is most useful for traders:
http://www.cxoadvisory.com/blog/internal/blog-calendar-effects/
Fundamental
This is a great article on the rationale for using average rather than current earnings and multiples to judge Market (stock) under/over valuation. Our Valuation Model does much of this but in a slightly different way;
http://www.hussmanfunds.com/rsi/adjustingpes.htm
News on Stocks in Our Portfolios
Some thoughts on gold:
http://gold.seekingalpha.com/article/40389
While we were gone, rumors arose on the potential buyout of Quest Diagnostics. This stock still qualifies as a Buy in our Aggressive Growth Portfolio. Here is an article on its stock’s valuation:
http://biotech.seekingalpha.com/article/40460
EPS: 2006 $3.22, 2007 $2.80, 2008 $3.25; DVD: $.40, YLD .8%
Marshall and Ilsley is buying First Indiana Corp, a financial services firm, for $529 million in cash.
EPS: 2006 $3.22, 2007 $3.35, 2008 $3.55; DVD: $1.20, YLD 2.6%
http://finance.yahoo.com/q?s=MI
Ecolab is acquiring Eagle Environmental Systems, an Australian pest elimination business, for an undisclosed amount of money.
EPS: 2006 $2.54, 2007 $2.85, 2008 $3.15; DVD: $.46, YLD 1.2%
http://finance.yahoo.com/q?s=ECL
Market Analysis
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