Just a little more patience
Steve Cook on Disciplined Investing


Have You Seen This?


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Have You Seen This?


   This Week’s Data

    The International Council of Shopping Centers reported weekly sales of major retailers fell 0.9% versus the prior week and 0.6% on a year over year basis;  Redbook Research reported month to date retail chain store sales down 0.7% versus the comparable period in July and off 4.5% versus the similar timeframe in 2008.


    An argument on why deflation is not that bad:

    The rise in medical costs versus college tuition:

    Good news out of Asia:

    The increasing affordability of automobiles:

    The US government is subsidizing the purchase of distressed assets by the Chinese government.  Say what?

    Pimco thinks the dollar is losing its status as a reserve currency:

    On the other hand:

    The storage figures on oil:



About those healthcare ‘coops’:

    Martin Feldstein on Obamacare:

  International War Against Radical Islam

The Market

    Here is an interesting chart on the average performance of stocks over a decade:

    A chart of the dollar index:


    The indices (DJIA 9216, S&P 989) rebounded yesterday and staying well inside the boundaries of the up trend off the March lows (8696-10405, 948-1166).  Notably the VIX fell sharply and closed below the upper boundary of the down trend off its October 2008 high.

    I said in yesterday’s Morning Call about the only thing one could say about Monday’s pin action was the 1004 had provided stiff resistance.  Following yesterday’s positive performance in the face of negative news (see below),  the thing that I would say  is that there remains considerable support for stocks even above the obvious support levels.

    I would have bet that the Market would close down yesterday and give us the chance to buy below 975.  Shows you what I know.  Nevertheless, this remains a time for patience; let the Market come to us.

    This is a great article by a sports psychologist adapting his advice to traders; but most of the points cam be applied equally to longer term investing.  Enjoy:


    Yesterday, stocks were up largely because the Asian markets rallied overnight.  US news was light:  Aside from the bobbing and weaving the administration was doing over the ‘public option’ on healthcare, the main news items were the economic stats and as I noted above, they were basically ignored.
(1)    the lousing housing starts number [down 1%],

(2)    continuing poor retail sales [see above],

(3)    and one positive figure--July PPI, down .9%.

Posted 08-19-2009 8:46 AM by Steve Cook