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  • Association of Investor Awareness - Week of 05/28/2009

    In This Issue:

    Is The Economy Finally Turning Around?
    Companies With Cheap Eats Are Doing Well
    China's Economy Is Still Hot (Compared With Everybody Else)
    Energy Investments Are Looking Good Again
    The Bottom Line This Week

    The stock market rally that started on March 9 is proving to have longer legs than even the most optimistic investors dared hope. Through the end of May, the S&P 500 was up 30 percent even though the economy was continuing to decline.

    Over the past month, however, the market's performance suggests that the rally may be getting short of breath. Since our last newsletter, the Dow gained an unremarkable 1.1% and the Nasdaq barely rose 0.7%. It remains to be seen if stocks will get a second wind and run for another few laps, of if a correction is on the way.

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  • Association of Investor Awareness - Week of 04/30/2009

    In This Issue:

    Signs Of A Better Economy? (Or At Least Not As Bad?)
    Stocks For A Weak Recovery
    The Bottom Line This Week

    Last month investors received another booster shot from Wall Street as the Dow and the Nasdaq rose an additional 1.2% and 5.5% respectively. The gains left stocks up 26% from the rally's jumping off point. With any luck, and a few encouraging numbers from the economy, the rally could continue for another few weeks.

    Lest anyone think the bear is finished, however, we must remind you that the market never moves in a straight line very long. Even if this is the start of a new bull market, we must expect to get some nasty shocks along the way. After such a strong rally, the first correction may be close at hand.

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  • Association of Investor Awareness - Week of 12/18/2008

    In This Issue:

    The Economy Is Bad, But Stocks Are Priced For Worse
    Stocks Outshine Their Competition
    Behold The Halo Effect
    A January Bounce Seems Likely
    Energy And Foreign Growth Are Positives
    We May Be Halfway Through The Economic Downturn
    What Everybody Knows...
    The Bottom Line This Week

    Last week we received additional signals that a bear rally is probably in the works. During the five day period, investors were treated to a smorgasbord of bad news. Congress turned thumbs down on bailing out the Big Three automakers. Unemployment surged to a 26 year high. T-Bill returns dropped to essentially zero. Many bellwether companies issued earnings warnings. Several firms cut their dividends, and investors were shocked by a $50 billion hedge fund collapse.

    So what did the market do? It barely budged. The Dow eased down less than 0.1%. The Nasdaq actually rose 2.1%. The market was also strong during the first three days of the current week. In our opinion, such resilience in the face of disturbing economic events indicates that investors are probably getting ready to do some buying.

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  • Association of Investor Awareness - Week of 11/06/2008

    In This Issue:

    The Rally May Have Legs – Or Not!
    A Banquet For Value Investors
    Dividends Shine In This Market
    A Yield Bonus That Few Investors Consider
    The Bluest Of The Blue Chips
    Love Those Dividend Aristocrats
    The Bottom Line This Week

    The mid-cycle rebound we have been expecting showed up last week with a spectacular opening. Even though the market on Monday showed a 203 point loss, huge gains over the remaining four days pushed the Dow and the Nasdaq up 11.3% and 10.9% respectively.

    This time the gains survived the weekend, but not for long. Monday was a yawn, but the market jumped 305 points on Tuesday as excitement about the presidential election boosted spirits. On Wednesday, however, America suffered a post-election hangover and stocks dropped a whopping 486 points. It looks like Wall Street plans to give President-elect Obama a very short honeymoon.

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