The Fed released their decision on interest rates today. Here is their statement.
"For immediate release
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.
Economic growth was moderate during the first half of the year. Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.
Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.
Although the downside risks to growth have increased somewhat, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Michael H. Moskow; William Poole; Eric Rosengren; and Kevin M. Warsh."
Referenced from http://www.federalreserve.gov/boarddocs/press/monetary/2007/20070807/
Good morning. The US retailer Costco (COST) was touted this morning on CNBC as a stock to put your money during the current market down turn. If I was in a defensive posture then I would have to agree, however I am currently bullish on the market. The margins at COST are extremely slim.
Before initiating a position in COST I would want to see significant prospects for margin expansion. I guess I'll listen to the next conference call since I am in the market for another retailer to replace half of my Home Depot (HD).
They have great deals on big screen tvs. I am very happen with the 42" Sceptre HD tv I purchased from Costco last year. The new 46" Sceptre looks even better. Maybe I'll buy the new Sceptre instead of the stock.
CNBC also had a money manager on who recommended biotech stocks as a safe haven. I will always have biotech as a segment of my portfolio, yet they have not been the safe haven they used to be during market down turns. I'm currently looking into Genetech (DNA).
My intended content for this blog is 2-fold.
First, I will use this blog to provide my personal views on the US stock market, individual stocks and other related financial topics. I will never recommend that anyone buy or sell a specific stock or provide any other financial advice. However, I will provide my personal view on where specific stocks are headed based on my limited knowledge of the markets. I will include charts and data when applicable.
Second, this blog is an open forum. Feel free to share valuable stock market links or your personal views on current market or stock specific events. Links are filtered to include only high quality relevant information and data. Here is the current chart of the proxy for the S&P 500 index, ticker symbol SPY.
| Chart Courtesy AiStockCharts.com |
I believe the Dow and Nasdaq are not as relevant as a reflection of the overall US stock market as the S&P 500. Most fundamental and technical measures I follow show that the S&P 500 is way under valued right now. So I'm putting my cash reserve to work and buying stocks now. I'm a buyer of Titanium Metals, ticker symbol TIE under $32 / share. Granted it's a risky play given others in their industry have reported earnings only to have their stock price tank. The ace in the hole is the recent insider buys made by the wife of Harold Simmons, the Chairman of the Board. Earnings are due any day now (unpublished for some strange reason, but not out of the norm for that company).
| Chart Courtesy AiStockCharts.com |
I have traded stocks for 21 years with my share of wins and losses. I was nearly wiped out in the crash of 1987 with my holding in LEV Scientific Industries, a manufacturer of home cancer test kits. However, my biggest loss was in Excite @Home during the recent 2000 bubble burst.
Lessons learned included diversification and equity preservation among many others I plan to share in this blog. I never forget my mistakes and have done well over the years. Feel free to share you stories and lessons learned.
Happy trading everyone!
