Wrapping Up August

There’s only a day left to this month and so far my prediction of trouble in August/September has proven dead (cat bounce) wrong. It’s too early to call the whole thing off, though. The market may yet give us a great buying opportunity before the end-of-year rally.

For starters, there are still lots of people worried about the economy. Chief among their concerns is terrorism, according to BusinessWeek.

I submit that something looming just as large is the fallout of the bursting housing bubble. What’s that you say? Still don’t buy that there was a bubble? Have a look at this chart.

We get the employment numbers tomorrow. From Econoday:

Employment has been coming in on the soft side. Non-farm payrolls rose a modest 113,000 in July following gains of only 124,000 and 100,000 in June and May. On the other hand, earnings have been quite strong recently with sharp increases of 0.4 percent in both July and June. Even with slow employment growth, a key issue is whether labor markets are still too tight for current monetary policy. We need to see not just a continuation in moderate employment growth but a slowing in wage pressures.

That would be good, particularly since profits are still slated to slow later in the year.

Remember that trading volume has been low during this rally, casting doubt on its sustainability. September looms ahead. Patience, cash, and a shopping list appear to be good companions.

This entry was posted in Uncategorized. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • The Kelly Letter
    A Complete Investment Management System
    The Kelly Letter  every Sunday morning by email.
    Like no other. Many subscribers say this is the best read of their week, astonishing in its ability to distill seven days of noise into one succinct overview of the very few items that might matter. Start your Sundays right!
    A one-page Quick Start Guide
    with page number references to full information in The 3% Signal. You'll receive access to this right away so you can begin transforming your portfolio into a performance machine immediately.
    The 3Sig Calculator.
    A thing of beauty! You'll use it to generate your own personal signals every quarter including exact share amounts to buy and sell based on your account balances. It emails you the results to make later quarters easy by keeping last quarter's numbers at your fingertips. Some subscribers say this tool alone justifies their subscription price.
    The subscriber-only section of this website
    where likeminded investors are commenting on notes and discussing in forums. Jason joins these interactions every day. They're a treasure trove of investing tips and wisdom.
    The archive of Kelly Letter notes.
    It’s a research center, searchable and smartly tagged to make gathering time-stamped material on covered subjects easy.
    The subscriber podcast.
    Jason reads every letter word-for-word. This feature was requested by subscribers who prefer audio learning. They listen on their Monday morning commute, during a workout, or while reading along at their computer.



    $200/year
    Save 17%



    $20/month
    Pay as you go
    Or sign up to receive free email and learn more about the system.
    Do you have a question?
Bestselling Financial Author