Sunday, July 12, 2009

Market Update -7/12 or "Dogs marching up a hill"

I have always loved this picture from the web and needed to work it into a blog post. These dogs are working so very hard to get up the hill and seem to be on a mission. I am not sure where they are going. ?

Well the picture is like the current stock market here in the US (as of 7/10). You can have the best quality stocks in your portfolio and be working very hard to improve your positions , but you really don't know where it is going over the last 6 weeks or the next six. I guess we should have all "sold in May and went away." I say every year that "were not going to get fooled again" to quote The Who, but we are probably more fully invested at this time in stocks versus cash than we should be. Hunker down time.

Some things you can do right now is to re buy positions where you have an unrealized capital losses and then sell your original position in 31 or 32 days. You can lock in tax losses for 2009 and sometimes get a little uplift in the stock price. You can also re balance the diversification of your portfolio by buying and selling like priced stocks in different sectors.

I think what we need here right now is for the 30 year interest rates for mortgages to be cut down to the 4 % to get all this debt in the system refinanced and get the housing market moving again.

We also need stimulus grants to small businesses to get them moving again, because they create 60 to 80 % of the new jobs in the US.

We also need to put back in place the "uptick" rule for shorts in the market so that these super "bear" hedge funds with their pools of money cannot continue to strafe good stocks with earnings and decimate them.

Enjoy your week. .............(If you are an employer, hire somebody and put them to work on a project to create new growth at your company.)


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