8/22/07

Economics

a disruption in global oil supplies (It is not the price of oil but its availability that will cause severe economic dislocation.).

http://www.investors.com/editorial/editorialcontent.asp?secid=1501&status=article&id=272501641356045

Politics

Domestic

International

If you are interested, here is an article on how the new UN Secretary General Ban Ki moon is ‘reforming’ (not) the UN.

http://article.nationalreview.com/?q=NGZjY2RjNDZjNjc2NGY4MTc5NGU0ZjRlNTQ0MzQ0N2M

The Market

Technical

Fundamental

The primary headline in the financial press yesterday was the growing expectation of a Fed Funds rate cut at the Fed’s September meeting. If that happens (and interest rates move lower or began moving lower now in anticipation of the event), dividend paying stocks especially those with high yields should do better (the dividend yield of stocks are indirectly tied to fixed income security yields). That means the High Yield Buy List should be a great source for new investment ideas. We would point to Citigroup (C), Fifth Third Bancorp (FITB), Realty Income Trust (O), Buckeye Partners (BPL), Integrys Energy (TEG), Kinder Morgan Energy Partners (KMP), Southern Co (SO) and WGL Holdings (WGL).

More thoughts on the sub prime lending problems:

http://article.nationalreview.com/?q=NDljY2I4YWJjMDdlMjQ0M2M3MzJlMmMyMDQ3ZDJlYTg=

And this on the some legal ramifications of the ‘truth in lending’ act:

http://bigpicture.typepad.com/comments/2007/08/coming-soon-tru.html

News on Stocks in Our Portfolios

Medtronic (Aggressive Growth Portfolio) reported its first fiscal quarter earnings per share of $.62 in line with expectations and versus $.55 reported in 2006’s fiscal first quarter.

EPS: 2006 $2.47, 2007 $2.70, 2008 $3/05; DVD: $.47 YLD 0.9%

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

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