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Tag Archives: T bonds

October 2006 Issue

This month, find out why the stock market is primed for a strong, sustainable growth cycle starting sometime in the fourth quarter of this year. I’ll
show you how to make the most of the lucrative—yet in many ways “different”—bull market I see unfolding. To help you get your ducks
in a row, I’ll name my top three industry groups, with my #1 stock pick in each for potential gains of 60%-80% and more by late 2008 or early 2009.
I’ve also included a long list of ill-fated stocks and mutual funds to cut loose as quickly as possible.

April 28, 2006

Buy what’s down! Stock prices put on a mixed showing this week, as a powerful rally in bank stocks offset weakness in technology and small caps. We expect more of this whiplash action in coming weeks.

April 21, 2006

Contradictions! Stock prices bounced this week as investors focused on soothing comments from the Federal Reserve and ignored the skyrocketing price of crude oil. We’re not sure how long this type of contradiction can last.

Important Bounce for Bonds

Bond prices jumped today, with the longest-dated Treasuries tacking on almost a full point. While I’m not ready quite yet to call an end to the sell-off that began way back in early June, today’s action was an important step in the bottoming process.

The Fed Plays with Fire

Comments from three regional Federal Reserve presidents touched off a selling squall on Wall Street today. (The Dow fell 94 points, and the blue chip S&P 500 sustained an even bigger percentage loss.) It’s a sign that the stock market is becoming more and more worried that the central bank may tighten credit too far.

What Next for Rates?

A week from now, we’ll know a bit more — when the Federal Reserve meets and decides whether, out of respect for the victims of Hurricane Katrina, to take a break from its credit-tightening campaign. At this stage, I’m still expecting Greenspan & Co. to boost money market rates by another quarter-point (to 3.75% on federal funds). But it’s a close call.

SHORT THE BONDS?

I’ve had several messages from subscribers in recent days asking whether it’s time to sell Treasury bonds short. My answer: Maybe a little later. Certainly not now.