7/1/08

Economics

This is a very thoughtful article on the banking crisis and the Fed’s alternatives to solve it. It is short and a must read:

http://www.thestreet.com/p/_htmlrmd/rmoney/investing/10423858.html

More data on oil prices and disposable income:

http://mjperry.blogspot.com/2008/06/adjusted-for-income-and-fuel-efficiency.html

Facts about nonproducing oil leases:

http://energytomorrow.org/energy/Facts_about_Non_Producing_Leases.aspx

Politics

Domestic

International War Against Radical Islam

The Market

Technical

Fundamental

It occurs to me that I haven’t addressed the issue of our cash reserves while I have trying to contain the damage in this latest breakdown in stock prices--even though judging by my actions that policy has clearly changed. As you know, back when I was young and naïve and thought that stock would hold their April 2008 lows, we were attempting to improve the fundamental and technical strength of our Portfolios by selling weaker holding during Market advances, building cash reserves to 15%, then spending a portion of that cash (down to 10%) adding to our stronger holdings as prices weakened.

Once the S&P broke its April 2008 low, I forgot managing our cash reserves and began managing the preservation of principal which entailed (1) a ‘no quarter’ attitude towards stocks that traded out of their Buy Value Range and showed technical deterioration and (2) the need to preserve profits that we had build in our better performing positions. Right now, the size of our cash reserves is not particularly relevant; our strategy is being driven by loss prevention and profit retention.

Subscriber Alert

Our Portfolios will continue the above policy At the Market open this morning:

Visit www.strategic-stock-investments.com, learn about our dividend growth investment strategy, sign up and find out what we are buying/selling today.

Million Dollar Portfolio Challenge

Portfolio 1 (90.2): Sold: none

Bought: none

Positions: Automatic Data Products, Johnson Controls, WalMart, Canon

Portfolio 2 (89.4%): Sold: none

Bought: none

Positions: Franklin Resources, Chevron, SAP

XTO Energy

Portfolio 3 (93.5%): Sold: none

Bought: none

Positions: XTO Energy, Smith Int’l. ConocoPhillips, SAP

Portfolio 4 (88.2%): Sold: none

Bought: none

Positions: Suncor , Chevron, Peabody Energy, SAP

News on Stocks in Our Portfolios

A positive write up on Alliance Resource Ptrs (High Yield Portfolio):

http://seekingalpha.com/article/83322-alliance-resource-partners-buried-by-profits

More Cash in Investors’ Hands