It has been a while . . .

I am back from vacation and getting caught up on things and it has been a while since I posted.  I was hoping someone out there would have straightened out the markets while I was away!  What were you people doing out there!  Oh well, I guess I didn't really expect oil prices to come down below $100 a barrel.  Nor, did I really expect the Dow to rise back up toward 12,000, NASDAQ above 2,500 and the S&P above 1,350!  Hey we can dream can't we!  At this writing we have begun the Democratic National Convention in Denver, CO.  The Republicans will get their shot in Minnesota after this.  As this concerns the markets, we should be seeing statistics, as we begin winding up the year, as to which party would be better for the markets.  I don't know what kind of faith you can put in this, but here are some of the numbers:

The Dow is the first year of a President's term:

Republican   +3.9%

Democrat  +6.0%

Who knows what will happen this time around!

There are certain industries that seem to be doing well in this slowing economy and 3rd quarter overall will be tough.  Some of the best hanging in there (with upward revisions in earnings) are Healthcare, Aerospace, Telecoms, Financials (yes they have no where to go but up).  Energy and Utilities are showing downward revisions to earnings!  So, still plenty of time until the end of the year, but as the 3rd quarter is winding down, many people look to reallocate their investment portfolio.  This is a tough year for much and most people would not have been on the sidelines with cash, so some strong analysis not only among which sectors should one be in, but in what company within that sector!

Well, I am back from vacation!

Well it has been a while since I have posted as I have just returned from a nice long vacation!  Lots of stuff has been happening in the world, both financially and otherwise.

First, Michael Phelps has achieved his goal of the 8 gold medals - I saw most of them during vacation - an amazing feat.  I also was able to really test out the iPhone as I didn't get great WiFi connectivity in the hotel room (too far from an antenna I guess).  The 3G really worked well for checking emails and posting small messages, I highly recommend it for those who have been waiting.  I have had no trouble with the AT&T service (I was with Verizon) in my local area, and had better coverage area on vacation than I would have had with Verizon.

Well, the financial markets were in another roller coaster pattern, with fears/signs of inflation, credit worries in the financial sector, oil dips to $113 and I still can't get my local pumps below $3.89 a gallon!!!  Russia and the Republic of Georgia are in a mini war - this adds instability to overseas investments, specifically in emerging markets funds.  Some analyst feel we are only halfway through the credit crisis and financial institution failure, one even going so far as to say that Merrill Lynch could fail.   The dollar, which had been on an incredible run, is seeing some profit taking early this week, but I project it will continue to make moves against foreign currencies.  Retailers are suffering weaknesses this weak as you are juggling back-to-school purchases with a worry about what consumers are going to be willing to spend for the upcoming holiday season.  Many analysts feel that retailers will have to offer huge discounts (read little markup/profit margin) to get people to start spending early.  Will it be enough???  We will have to see!

The markets had some success for a few days as some reported 2nd quarter earnings numbers were okay in some tech stocks, however, now there seems to be worry about the third quarter numbers, so things are still shaky.  I still think you can bottom feed on individual financial company stocks, but this is risky business.  If you guess right, you will be highly rewarded!  Fannie Mae and Freddie Mac appear ready to be recapitalized by the U.S. Treasury, so we will have to stay tuned for that.

For those of you thinking about buying a small car in the year end clearance times,  for good gas mileage, here is a list of the most affordable --- the "Top Ten Rides for the 2008 Model Year", all under $15,000 MSRP:

Honda Fit

Hyundai Elantra GLS

Suzuki Reno

Nissan Versa S

Kia Spectra LX

Smart fortwo

Toyota Yaris

Kia Rio

Hyundai Accent GS

Chevrolet Aveo 5 SVM

Olympics coming this week.

With the 2008 Summer Olympic Games starting later this week, bringing together people from many countries around the globe for competition and social interaction. It is a good time to reiterate the consideration of global investing as part of a diversified portfolio. Diversification can be your best protection against risk. It allows you to balance cash, fixed income and equity investments. Not only should one do this with domestic company investments, but it is important to do this with investments of foreign companies (bonds, stocks, or mutual funds allow you to participate in these markets).

Currently, 21 of the worldwide GDP is generated by the Unites States. It is estimated that by 2030, this will fall to 10%. So, currently 79% of the worldwide GDP is generated by countries OTHER than the United States. If you only invest in domestic securities and currencies you are limiting yourself tremendously.

Watching the Olympics you will see athletes from many countries, some you may not know much about. Use this opportunity to learn about other countries, cultures, and business environments and have this knowledge help your investment portfolio. You can invest in individual securities, but it is usually much easier to invest through a mutual fund. There are a number of choices out there and some big mutual fund companies like Vanguard and Fidelity are good places to start the investigation into what is out there. There is good free information about investing, asset allocation, diversification, and risk for you to review.