Archive for September 18th, 2007
The Hot Sheets
I’ve compiled a list of equities that were among the best preformers in their industries.
ISRG, BIDU, RTP, BBD, ITU, DRYS, MT, ATI, GSOL, FSLR, GRMN, SLB, MA, LEH, GS, DFS, SKS, DECK, UA, JCP, KR, JEC, JOYG, CAT, BRG, SBS
I’m going to track these on stockpickr.com and see if they outpreform till the end of the year.
PPI Gave It Away
| Released on 9/18/07 For Aug 2007 | |||||||||||||||||||||||||
The year-on-year rate for the overall PPI dropped to up 2.1 percent in August (seasonally adjusted) from up 3.9 percent in July. The year-on-year core rate came in at 2.2 percent in August, down from 2.4 percent in June. This is further conviction that inflation has moderated. is there inflation? absolutely. But things like oil and wheat are not easily controlled by the Fed policy. would you really eat less if rates were at 6%? Perhaps, but not by a lot. Still have to drive to work and housing deflation is the present danger. But what about the fact that the whole country isn’t in a housing recession? Good question, the best answer is that California is. The Californian economy is the eighth largest in the world. When you throw in Florida, Nevada, Arizona and Michigan you have too much of the economy under deflationary pressures. Throw California out and you’ll see no Fed rate cut, in my opinion. Because of this, I wonder if companies leavered to California and Florida will have the best upside in this rate cut cycle. definately research worthy. |
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Moving On
We got the rate cuts that we wanted. I’ve believed this was right but was very willing to settle for 25 basis and 50 on the discount window and thought it was the “obvious” result. I still see it as right and look forward to adding to current positions. I am seeing a high potential for a down one percent day in this week and a move higher from there. If this is right I will be adding to all positions and then we’re just moving on.
