PART 1
Please pat attention to Larry Levin, of Secretsoftraders.com and CNBC's Rick Santelli as they agreed this morning that the markets have been propped up by the Obama administration- see video.
For years, investors who accused the interventionists of doing such things were chided as being conspiracy theorists. Those who make these accusations are either part of the gang, or just plain dumb.
When comes to the stock market, please understand it is a game of us versus them. Listen to the people who mock terms like "Green Shoots, Goldilocks Economy, Soft Landing, The Resilient Consumer, Points above new all-time high on your TV screen, and don't forget this one...Erin Burnett's, Economic Nirvana."
PART 2
I know it's been plastered all over the TV today, but Bernie Madoff was sentence to 150 years in prison for his 20 year, $65 billion fraud scheme.
Okay, that's all well and good. What are they going to do about the Wall Street investment banks that created, the so called toxic assets that almost bankrupted the nation. What about those people? What do you think will happen to them?
Here is how judges have reacted when Wall Street investment banks doing something wrong- Sgt Schultz of Hogan's Heros
Can anyone say- It's us against them?
Here are our Top 10 ETF's for the week of June 29th:
1) DBA: Powershares DB Agriculture Fund
2) EWZ: Brazil Index
3) DBE: PowerShares DB Energy
4) USO: U.S. Oil Fund
5) IYF: iShares Dow Jones US Financial Sector
6) DDM: Ultra Dow 30 Proshares ETF
7) PGJ: PS Golden Dragon China Fund
8) IYW: iShares DJ US Technology Sector Index Fund
9) CASH
10) CASH
Here are our Top 10 Fidelity Sector Funds for June 2009
1) FSPTX: Technology Portfolio
2) FSRBX: Banking
3) FSCGX: Industrial Equipment
4) FCYIX: Industrials
5) FSCPX: Consumer Discretionary
6) FSCSX: Computers & Software
7) FSCHX: Chemicals
8) FNARX: Natural Resources
9) FSENX: Energy
10) CASH
For the Week:
New money continues to pour into the stock market as the mutual fund industry has seen a month and a half of positive inflows. These inflows continue to put a floor under the stock market.
With the consumer making up about 70% of GDP growth, the unemployment numbers need to improve to get the economy to start growing again.
The Labor Department announced that the unemployment rate is at 9.4% and expected to rise to 10% or 11%.
Concerns continue to grow from the world community over our nations so called "quantitative easing" program. Both German Chancellor Angela Merkel, and Chinese officials continued to question U.S. stimulus policies.
Chancellor Merkel said, “I view with great skepticism the powers of the Fed, for example, and also how, within Europe, the Bank of England has carved out its own small line,” she said. Merkel stressed that “We must return together to an independent central-bank policy and to a policy of reason, otherwise we will be in exactly the same situation in 10 years’ time.”
The Fed’s continued quantitative easing continues to put pressure on the dollar lower and push commodity prices higher.
-Gold
-The U.S. Dollar
Our current asset allocation is as follows;
85% Equities: (Normally 95%) Aggressive
72% Equities: (Normally 80%) Moderately Aggressive
56% Equities: (Normally 60%) Moderate
36% Equities: (Normally 40%) Moderately Conservative
18% Equities: (Normally 20%) Conservative
