9/21 newsletter
*** Market
Greenspan raised the interest rate again. His goal could be very well at 4%. Historically that is the level that can contain inflation. But that will make whoever bet on the spread pretty hard to breath. However, it is a question whether such a rate hike will bring the economy into a recession or not. Corporate profit is on the rise. With the spending on huricane reconstruction, it is hard to imagine the economy will lose the steam. Of course, it is another open question at what level oil price will become a cost to corporates. You see two airlines went busted this week.
Oracle bought Siebel. Mastercard is planning an IPO. Keep an eye on this big fish. Murphy Oil is added to SP500. I hold this stock. So maybe I will explain this stock in more detail next time.
*** Portfolio
My portfolio is about 1% ahead of SP500, >2% ahead of small-cap so far in September. The differential works out nicely. Small-cap shows quite a weakness so far this year. We are hitting really hard obstacle in the economy right now.
--Steve
Greenspan raised the interest rate again. His goal could be very well at 4%. Historically that is the level that can contain inflation. But that will make whoever bet on the spread pretty hard to breath. However, it is a question whether such a rate hike will bring the economy into a recession or not. Corporate profit is on the rise. With the spending on huricane reconstruction, it is hard to imagine the economy will lose the steam. Of course, it is another open question at what level oil price will become a cost to corporates. You see two airlines went busted this week.
Oracle bought Siebel. Mastercard is planning an IPO. Keep an eye on this big fish. Murphy Oil is added to SP500. I hold this stock. So maybe I will explain this stock in more detail next time.
*** Portfolio
My portfolio is about 1% ahead of SP500, >2% ahead of small-cap so far in September. The differential works out nicely. Small-cap shows quite a weakness so far this year. We are hitting really hard obstacle in the economy right now.
--Steve
posted by Steve at 5:34 PM
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