Wednesday, March 26, 2008

3/26/08

Economics

This is a really interesting article. It looks at the upcoming tax rebates in the context classic economic theory—which sounds way too high pedagogical; but it is a good read nonetheless:

http://www.realclearmarkets.com/articles/2008/03/economic_stimulus_v_economic_g.html

More statistical analysis of Monday’s existing home sales number:

http://bigpicture.typepad.com/comments/2008/03/existing-home-s.html

But there is some good news:

http://mjperry.blogspot.com/2008/03/housing-affordability-jumps-by-27.html

Politics

Domestic

Clinton on the housing crisis:

http://www.clubforgrowth.org/2008/03/comrade_clinton_needs_econ_les.php

International War Against Radical Islam

Defining victory in Iraq:

http://www.slate.com/id/2187386/

The Market

Technical

A look at Market breadth:

http://bespokeinvest.typepad.com/bespoke/2008/03/market-breadth.html

Fundamental

Subscriber Alert

The Aggressive Portfolio has been so aggressive in its sale of weak holdings during this Market rally that its cash position has grown to size (30%) that I feel has become uncomfortably large (remember we are transitioning from a 15-20% to a 12 ½-17 ½% cash position in each of our Portfolios). Therefore, at the Market open this morning, the Aggressive Growth Portfolio will purchase additional shares (about 1/10 of a position) in Medtronic (MDT-$44), Staples (SPLS-$23) and FactSet (FDS-$57).

In addition, the stock price of Quaker Chemical (KWR-$28) continues to soar. Accordingly, the High Yield Portfolio will Sell additional shares (this is the second such move) at the Market open this morning.

I made a foolish mistake in yesterday’ Morning Call. In the Subscriber Alert, I noted that the Aggressive Growth Portfolio had never Bought Fastenal (FAST-$47), when in fact it had Bought a one quarter position before the FAST’s stock price got away on the upside. The Aggressive Growth Portfolio continues to own this stock.

News on Stocks in Our Portfolios

A positive write up on Kinder Morgan (High Yield Portfolio):

http://seekingalpha.com/article/69982-kinder-morgan-to-benefit-from-increasing-natural-gas-consumption

More Cash in Investors’ Hands

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