Tuesday, September 25, 2007

When Interest Rates Fall, These Go Up +25%

TODAY'S DOW JONES TRADER PORTFOLIO FACT$:

1. Coca-Cola Company (KO) Hit a 52-week high: $57.68
2. Procter & Gamble (PG) Hit a 52-week high: $70.73
3. Our DJT Portfolio hit a new year high at +25.4%

Last Tuesday, we got the biggest buy signal since November 6, 2002. When we received that buy signal, the Dow closed at 8,771. That market trough coincided with the last time the Fed cut interest rates by 0.5%. Since then, the markets have done extremely well and that buy signal kicked off a five year bull market.

... But, while the Dow (overall) has returned a mere +57% since that time, there have been a lot of much better performing stock investments. Two of the best performers since that time were Energy and Health Care. Since the bull market began on October 9, 2002, the FACT is that only 18 of the 500 stocks in the S & P 500 Index have seen their share prices decline during this bull market run.

Can this time be different? Of course it can, but we're betting that long term stocks will rise handsomely and short term we intend to maximize our returns by riding overall market momentum and individual stock trends.

FUN $ FACTS:

The best performing current S&P 500 stock since the bear market began on March 24, 2000 is: XTO Energy (XTO) ... Which leads the top 25 list with a whopping return of over +2,188% ! The worst? ... JDS Uniphase Corp. (JDSU) ... it has fallen over -98.9%.
(We say, "Let bad dogs lie ...")

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