October 15th, 2007
Al Gore the man who brought you the internet is now a proud sponsor of climate change thru global warming, my bet is that in the long run he is as right about climate change as he was about discovering the internet, but hey there is lots of money to be made with carbon dispensations….
Oil prices surge on news that Turkey looking to invade Northern Iraq, one question what took you so long? As Oil continues to hover around $80 a barrel this seems to be propelling alternative energy stocks ever higher.
For the buy signal, Option traders are telling us the market has hit a short term peak. Being the contrarian I am I am always willing to bet against any commonly held notions. Another bullish signal is that retail investors continue to take money out of equity mutual funds. In the past there was no better predictor of market direction than mutual fund money flows. What can I say looks like a nice set up for some more upside in US equities?
Yes its earnings times once again and much has been made about changes in managements, mergers and acquisitions, my suggestion would be for many companies who are having a tuff time better to focus on customer service especially when sales are internet dependent, Technology is proven to not be a substitute for brains or service.
It seems earnings expectations have been greatly diminished, and traders wonder weather the FED’s Halloween meeting will offer a trick or a treat? The release of the September 18th minutes seem to suggest the FED was neither panicked nor oblivious contrary to popular belief.
So why buy US stocks, well from a global perspective the US continues to have higher earning predictability which usually garners a premium and lower volatility compared to other markets.
James J Foytlin