Saturday, March 7, 2015

"The current President and Congress refuse to cut corporate taxes and encourage business growth and job growth so we are stuck in this "Stag-covery". 2% does not get it done and Janet Yellen wants to raise interest rates, making our products more expensive to the rest of the world. A bad combo! OMG

Dow Jones Industrial Average 18,132.70  (UP) Week ending 02-27-2015
Dow Jones Industrial Average 17,857.00 (Down) Week ending 03-06-2015

The FED and Janet Yellen want you to believe that we have a 5.7% unemployment rate and that we are growing steady at some sort of rising rate and that it requires a FED rate hike. This is simply not the truth.

  There are 229 Million people over the age of 18 in the United States, (not even counting the illegals). 8.7 Million people are looking for work. 6.5 Million have given up and have stopped looking for work. 6.6 Million are under-employed, working part time jobs until they can find something better. So that is really 22 Million of 229 Million people that are really Unemployed or Underemployed, which really equals to a 9.6% unemployment rate. A huge difference!

Without the tax laws being changed, capital and employment continues to flow overseas to other countries. We are in a "Stag-covery" , a word I just coined. 

 The stock market has gone as far as it can go here under the current conditions. I know this because, the number of companies with PEG Ratios under 1.5 and that do not have large debt burdens is somewhat limited right here. (Not to mention all the commodities crashing down in price around us in Deflationary trends.)

We need our US Government to act and to create a growth environment by cutting corporate tax rates which will provide job and wage growth. They also need to restructure and reorganize the Public sector, the government employed and the way they are deployed and the pension obligations created, and make it more effective and efficient to serve the people of the US better for the money that we spend on it. After all, it is our government and we the taxpayers own it.

So I would make no US stock buys here currently! 


Some names I have been looking at lately, but not buying yet are companies like Google (GOOG) , with it's great balance sheet.

Avnet (AVT) and Arrow Electronics, as kind of plodders that work there way ahead over time. 

I like Cardinal Health a little bit here.

American Express (AXP) looks like it could have some upside here.

I am also looking at Mid-Cap and Healthcare ETF's and mutual funds, but not buying yet.

The problem with all the above named and others is that if you buy them here you have no Margin of Safety. Why take a position that is going to make you start out immediately in the hole?

Sit tight and keep your powder dry is the word for the week. Raise some cash and look for better opportunities ahead.

Hopefully the snow is finally done!

Have a great week,


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