Tuesday, May 01, 2007

Tactical Update

I've posted my most recent Tactical Update on our website. Click on the title of this post to read the whole thing:

The DJIA rose above 13,000 today (4/25/07). The correction of late February is but a distant memory as investors cheer --- what? The economic picture hasn’t changed much in the last month; indeed if anything the slowdown may be starting to gain some traction. So why are stocks rising?

It has been said that when the US economy catches a cold, the rest of the world gets the flu. Is that still true? I believe there are some fundamental changes happening to the world economy that have significant implications for our investments. The globalization process continues apace regardless of the wishes of our provincial politicians. The news that no one seems to want to report is that globalization is working as advertised. The process makes the world economy less volatile as faster growing foreign developed and emerging economies offset the weakness in the US. Furthermore, there seems to be a smoothing effect on US corporate earnings as well.

You can also check out my Active Tactical Portfolio here.

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