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Tag Archives: BRK.B

January 2007 Issue & Supplement

After four good years, can the markets hand us another winner in 2007? The answer is YES! We’re in an exciting phase for the markets and I’m expecting another double-digit year for the major stock indexes, plus 20%-30% (and even bigger) returns for a number of our favorite picks!
In this month’s issue I’ll share with you my roadmap for the New Year, including my insights into some speed bumps we might experience along the way. I’ll let you know one way to remain calm during the inevitable stock market “corrections” and I’ll give you some of my best ideas on how to outwit Dr. Bernanke at his own game.
And later, in this month’s special supplement, I’ll give you Six Pearls of Investment Wisdom, something we all need in order to make the most of our opportunities while keeping our risks low.

January 2007 Issue & Supplement

After four good years, can the markets hand us another winner in 2007? The answer is YES! We’re in an exciting phase for the markets and I’m expecting another double-digit year for the major stock indexes, plus 20%-30% (and even bigger) returns for a number of our favorite picks!

In this month’s issue I’ll share with you my roadmap for the New Year, including my insights into some speed bumps we might experience along the way. I’ll let you know one way to remain calm during the inevitable stock market “corrections” and I’ll give you some of my best ideas on how to outwit Dr. Bernanke at his own game.

And later, in this month’s special supplement, I’ll give you Six Pearls of Investment Wisdom, something we all need in order to make the most of our opportunities while keeping our risks low.

A Clink of the Glasses to Warren

With the holidays approaching, now is as good a time as any for us to toast a gentleman who has fattened our purses this year, Warren Buffett. Today, shares of the multibillionaire’s Berkshire Hathaway holding company touched a new all-time high.

Warren Goes Electric

What’s he trying to tell us? On Tuesday, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A or B) announced it will buy PacifiCorp, an electric utility serving six western states, for $5.1 billion in cash and $4.3 billion of assumed debt and preferred stock.

No Mo

It’s hard to put the conclusion more simply than that. The stock market has tried valiantly to bounce off the April 23 low. So far, though, the rally hasn’t gained any real traction. There’s “no momentum.”
You can see the problem in the 10-day rate of change for the Standard & Poor’s 500 index. This momentum gauge has made a series of four declining peaks since February.

The Thousand-Mile Journey

We’ve just taken the first two steps.
Yesterday and today, buyers came out of their Wall Street bomb shelters and made their first tentative purchases. Another good up day tomorrow would help, but we’re still in the earliest stages of a long recovery road for stocks. Be prepared for lots of back and forth action as the market indexes try to form a solid bottom.

Out of the Hole

The stock market is slowly working its way out of the panic attack that began about four weeks ago. Little by little, in a two-steps-forward-one-step-back fashion, the major indexes are pushing through overhead resistance. Once the short sellers lose their nerve and start to buy back borrowed shares, we could see a nice pop over the next few weeks.