SPECIAL INTRO
OFFER!

List value
for this 24-issue
newsletter is $180.

3 MONTHS of MONEYLETTER
for ONLY $19.99!

(New subscribers only.)




IN THE CURRENT
MONEYLETTER
ISSUE!

Venturesome Investors:
Put Some Cash to Workv

The Hotline of January 11 recommended a change for Venturesome investors' allocations. We raised the domestic stock allocation to 55% from 45%, and lowered the money fund allocation to 10% from 20%. We were holding the 20% money fund allocation as a safety measure against...

Want to read more?
Sign up for your
FREE Current Issue...



Welcome to the September 3, 2008 issue

View MONEYLETTER Hotline as a PDF (click icon):     
or keep reading...

Wall Street is very, very skeptical. As the economic numbers come in and do not show an economy falling out of bed, the reaction is to say, “just wait.” Wall Street has a basis for its worries. Most compelling is the squeeze on the consumer’s pocket book from wages that are not keeping up with inflation. It is logical to expect this squeeze to have an effect on spending, and it has.

But there are offsets occurring. And today we had two examples in new factory orders and new vehicle sales for August. Other numbers have been coming out, such as yesterday’s report on manufacturing activity, which carry the same message: the economy is not great, but it is holding up. What we have now is a standoff in the market between those who say the slide has only been postponed and those who say things have held and some of the trouble spots are looking better.

We expect this push-pull to continue for a while. One big negative is the fading of the stimulus. But one big positive is the fall in oil prices. Another is exports, which clearly is influencing the continued sturdy rise in new factory orders, last month’s included. Also the fading consumer isn’t fading away entirely. Despite the headlines, last month’s car sales actually rose smartly from July’s miserable showing. The consumer is not dead yet. So far the economy has held up better than expected. We continue to favor stock funds.

There is no change in our recommended allocations

New Fund Ratings – There are no changes for domestic stock funds. For international stock funds, Janus Global Research is now rated Buy. USAA International is once again rated Hold. There are no other changes.

The Stock Market – As we now know there has been large hedge fund liquidation, particularly in commodities. This is powerful, but limited. This partially explains the market’s negative response to better economic news recently. There is also the skepticism discussed earlier. The market will struggle but we join those looking for higher prices by yearend.

The Bond Market –

The Select Portfolio – There are no changes for this portfolio.

The next Hotline is scheduled for Wednesday, September 10 at 7pm.

Back


 

Subscribe to MONEYLETTER and receive these Free Bonus Gifts:
"MONEYLETTER Guide to Mutual Fund Investing"
MONEYLETTER Hotline
MONEYLETTER Archives
 

Sign up for your
FREE Current Issue
Today!

Email:

Your Name:
 



Questions?

800 890-9670

"Mutual funds are one of the best investments ever created because they are very cost-efficient and very easy to invest in..."

Dustin Woodward

MONEYLETTER PLUS INCLUDES...

• ETF Corner

• Muni Bond Fund Report

• Buy, Hold, and Sell Recommendations For:
- 342 Domestic Stock Funds
- 123 Int'l Stock Funds
- 159 Specialty Funds
- 91 Bond Funds

• Weekly Performance for All Model Portfolio Holdings

More about
MONEYLETTER Plus


Introduction | FAQs | Subscribe | Our Team | Contact Us | Newsletter Archives | Privacy Policy
©2005-2008 PRI Financial Publishing Inc. All rights reserved.