NEW BUYS:
None
NEW SELLS:
None
Here are our Top 10 ETF's for the week of June 23th:
1) FXF: Currency Shares Swiss Franc Trust- .421
2) SLX: Market Vectors
Steel Index Fund- .460
3) EWZ: Brazil Index- .405
4) EEB: Claymore ETF BNY
BRIC- .390
5) DBA: Powershares DB Agriculture Fund- .480
6) ADRE: BLDRS
Emerging Markets 50 ADS Index Fund- .235
7) DUG: Ultrashort Oil & Gas
Proshares- Not Rated
8) PGJ: PS Golden Dragon China Fund- .116
9) KBE: KBW
Bank ETF- Not Rated
10) IYF: iShares Dow Jones US Financial Sector- Not
Rated
Here are our Top 10 Fidelity Sector Funds for June 2008
1) FSENX- Energy
2) FSCHX: Chemicals
3) FDFAX: Consumer Staples
4)
FSMEX: Medical Equipment
5) FSCGX: Industrial Equipment
6) FSDAX: Defense
& Aerospace
7) FWRLX- Wireless
8) FCYIX: Industrials
9) FSRBX:
Banking
10) FSVLX: Home Finance
Honorable Mention (Holds):
None
The Week in Review:
We are not making any changes to our DG portfolios this week. Given the focus
on reducing energy costs before the November elections, politicians are
scrambling to fix the problem. After closing just below $140/bbl the week
before, crude oil ended the week at $134.71, up slightly from the prior weeks
close of $134.40.
Saudi Arabia made the rumors of production increases official by saying it
would raise oil output by 200,000 bbl/ day, and increase it even more if
needed.
The president of OPEC blamed the $135 price of oil on speculators, and that
the "concern over future oil supply is not a new phenomenon".
Oil consumption is declining as we speak. China just raised oil prices by
18%, Congress is considering tightening the requirements to trade oil futures,
and Ford and GM are shutting down production of big cars and SUV's.
The trend is clear, lower consumption leads to lower profits for the "big
boys". Look for oil prices to decline starting in July.
Another issue on the table is finding a cure for the US mortgage mess.
Politicians are working on a deal where FHA will guarantee $300 billion in risky
loans. The President is threatening to veto the bill because banks would have to
take additional losses to get the deal done. This being said, I'm confident
something will be worked out to cure the problem.
In other news, last week the Royal Bank of Scotland said to "brace for a
full-fledged crash in global stock and credit markets over the next three months
as inflation paralyses the major central banks". While they may be right,
crashes usually don't occur when everyone expects one.
Several technical market gurus are now calling for the DJIA to reach a
reactionary low of 10000 by the fall.