In This Issue:
A Second Nip From A Double Dip
Bonds Are Soaring, But Could Be A Bubble
Blue Chip Discounts May Not Last Long
Two Bond Substitutes Look Especially Good
True Cash Returns Are Higher Than They Appear
The Bottom Line
Since our last newsletter in July, the economy signaled that it may
not be doing as well as it was earlier in the year. The employment rate
is failing to improve, consumer confidence is slipping, retailers are
singing the blues, many manufacturers are reporting fewer orders, and
July home sales plunged a disturbing 27%.
As a result, many analysts are beginning to think the economy may be
heading for another leg down – the dreaded “double dip.” If so, many
stock prices have been pushed too high. Accordingly, investors have been
pressing Wall Street’s down button of late. Since July 29, the Dow and
the Nasdaq declined 3.9% and 4.9% respectively.
...