6/5/08

Economics

Another absurdity of our immigration policy:

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/03/AR2008060303102.html

And our energy policy:

http://jewishworldreview.com/cols/will060508.php3

Long term this is very positive--it appears that the accounting for ‘special purpose entities’, where the banks hid all those highly leveraged loans, is about to change:

http://bigpicture.typepad.com/comments/2008/06/fasb-bombshell.html

An update on the risk in credit default swaps:

http://bespokeinvest.typepad.com/bespoke/2008/06/broker-default.html

A chart on the oil futures:

http://bespokeinvest.typepad.com/bespoke/2008/06/oil-prices-vs-e.html

The first US refinery in years?

http://mjperry.blogspot.com/2008/06/breakthrough-first-us-oil-refinery-in.html

Foreign investors are very positive on the US market:

http://mjperry.blogspot.com/2008/06/foreigners-almost-double-fdi-in-2007.html

Politics

Domestic

International War Against Radical Islam

The Market

Technical

I am still watching the DJIA (12390) April 2008 low (12263) and the S&P (1377) August 2007 low (1370) as possible bottoms for new respective trading ranges. Yesterday’s Market action did little to bring any additional clarity. I wait.

Fundamental

Subscriber Alert

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

CNBC Million Dollar Portfolio Challenge

Portfolio 1 (86.6%): Sold: none

Bought: none

Positions: Automatic Data Products, 3M, T Rowe Price,

General Dynamics

Portfolio 2 (88.5%) : Sold: none

Bought: none

Positions: Franklin Resources, Graco, Schwab,

Luxottica

Portfolio 3 (92.7%): Sold: none

Bought: none

Positions: Illinois Tool Works, Ross Stores. Schwab, Federated Investors

Portfolio 4 (81.5%): Sold: State Street, XTO Energy

Bought: Blackrock, Peabody Energy

Positions: Home Depot, Blackrock, Peabody Energy,

UPS

News on Stocks in Our Portfolios

Proctor & Gamble (Dividend Growth Portfolio) agreed to sell its Folger’s coffee division to JM Smucker in exchange for the stock of a new company comprised of Smucker’s current operations plus Folger’s. Shares of that entity that will accrue to PG will be spun off to shareholders sometime in the fourth quarter of 2008.

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

Smith Int’l (Aggressive Growth Portfolio) is buying W-H Energy, another oil field service company, for $3.2 billion cash and stock.

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

Staples (Aggressive Growth Portfolio) raised its bid for a Dutch office supply retailer, Corporate Express NV.

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

More Cash in Investors’ Hands