6/11/08

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.ibdeditorials.com/IBDArticles.aspx?id=297904745555169

More data on ‘income inequality’:

http://mjperry.blogspot.com/2008/06/we-move-up-and-down-quintiles-so-what.html

Money supply and inflation:

http://mjperry.blogspot.com/2008/06/inflation-with-no-growth-in-m1-for-3.html

Politics

Domestic

Obama’s new economic policy director:

http://www.nysun.com/editorials/obama-nomics/79678/

Dick Morris gives a pretty good analysis of what Obama needs to do to solve one of his biggest problems: past associations:

http://www.dickmorris.com/blog/2008/06/10/how-obama-can-win/#more-358

International War Against Radical Islam

The Market

Technical

Yesterday was like Monday: the Averages didn’t do much but there was a lot of volatility among stocks in different economic sectors. That said, another day without a follow through to last Friday’s big price drop is better than a sharp stick in the eye. This is not to say that current investor schizophrenia won’t give way to another spasm of selling; but it is to say that the longer it doesn’t, especially in the face of the continuing volatility in the interest rate, oil, gold and foreign equity markets and the longer the Averages hold a defined support level (DJIA April 2008 low-12263; S&P April 2008 low-1325/1982 to present uptrend-1317), the less likely that it will.

That is not a statement filled with great hope; but the question is, given our strategy of buying the dips and selling the advances, how many more days do we do nothing based on our concern over a resumption of a stock price decline versus adding to our investment position based on our assumption that the Market could bounce off its current support level? My solution, as always, is to split the difference thus insuring that we will be at least partially correct. So this Morning at the Market open, our Portfolios will make some very minor additions to its holdings.

Fundamental

Subscriber Alert

Visit www.strategic-stock-investments.com to see what we are buying/selling today.

CNBC Million Dollar Portfolio Challenge

Portfolio 1 (85.1%): Sold: Colgate Palmolive

Bought: Canon

Positions: Automatic Data Products, 3M, Johnson Controls,

Canon

Portfolio 2 (87.2%): Sold: none

Bought: none

Positions: Franklin Resources, Graco, Ecolabs,

Nike

Portfolio 3 (91.9%): Sold: Mastercard

Bought: ConocoPhillips

Positions: Emerson Electric Ross Stores. ConocoPhillips, Federated Investors

Portfolio 4 (80.9%): Sold: Mastercard

Bought: Walgreen

Positions: Linear Technologies, Blackrock, Peabody Energy, Walgreen

News on Stocks in Our Portfolios

A positive write up on State Street (Dividend Growth Buy List):

http://seekingalpha.com/article/80904-state-street-added-to-goldman-s-conviction-buy-list

Staples (Aggressive Growth Portfolio) buys Corporate Express for $2.65 billion.

http://money.aol.com/news/articles/_a/staples-buys-corporate-express-for-265b/20080611064809990001

More Cash in Investors’ Hands