Poor Pluto

August 17,2006

Hello,

So far this summer, scientist can’t decide if Pluto is a still a planet or not, and the UN is not sure weather Hezbollah will disarm to a Lebanese army no one is really sure exists or not and the FED can’t seem to decide weather to fight inflation that it is not sure it exists or not. And you thought it was hard to decide if you thought the market was going to rally or not?

To make matters worse some are not even sure weather we are in a war or not, that the enemy is Islamic fascism or not and the economy is slowing or not .Yep that’s what I have been thinking about all summer between the beach and the BBQ.

As the likely hood of any further FED rate increase continues to decline the market is responding with one rally after another, yet many investors continue to remain unconvinced. Perhaps it’s the predisposition of the stock market this time of the year to consolidate till the end of October or perhaps it’s just that investors are still off on holiday. Maybe it’s just the latest scandal or the lack of any meaningful return the last several years, but in any case cash continues to pile up on the sidelines.

In uncertainty there is opportunity and risk and it seems the investors are still unconvinced that current opportunities outweigh the risks, another words many investors remain unconvinced that the FED is done.


James

www.jamesfoytlin.com