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July 24th, 2007 | by admin

Staying Out of Stock

Category: Stock of the Month

For several months I’ve stayed out of stocks because I’ve predicted a downward trend in the market after the following events:

Oils rise near $70 per barrel.

Poor earning results after the interest rates have hiked up several times.  It may go up a bit more again later in the year, as more credit it tightened.

Lastly, the mortgage mess –It costs upwards of $200 billion.

All of this happened, yet the market didn’t take a downward trend for the summer.

I suppose a lot of the summer stock market direction was “directed” by the M&A activity.  The merger and acquisitions activity drove the prices of many of the large cap stocks.

I think the next few weeks will show a downward direction and I’ve now closed out of just about all the positions that I’ve been.  I’ve still kept to the idea “sell in May and come back in September” — In my case, it will be even later than that.

Just a few thoughts about the market as I prepare to publish the first NSS Stock of the Month in August.

Editor,
Rich Sage.

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