This is The Wall Street Digest Hotline Update for Friday, January 12, 2007, at 6:00 p.m. EST.
A flood of good economic news lifted stock prices Friday afternoon. At the close, the Dow rose 41 points, closing at 12,556; the Nasdaq added 18 points, to close at 2,502; oil closed up $1.11 to $52.99 per barrel; and gold closed up $13.00 at $626.90 an ounce.
Today's economic news implies that economic growth will begin to accelerate in the months ahead. An upbeat, more confident consumer continues to spend. Retail sales were up in December. The Federal deficit fell to the lowest level in four years. The dollar closed lower at 4:00 p.m. today after bouncing from an oversold condition.
The stock market is undervalued by 31 percent. Record liquidity in the banking system should move stock prices much higher in 2007.
You should be fully invested. Stay close to our telephone/e-mail/website Hotline Updates. We will continue to recommend additional global/international investments that will benefit from a falling dollar. At least 30 to 50 percent of your portfolio should be invested in global/international investments.
The stock market and the offices of The Wall Street Digest will be closed on Monday, January 15, in observance of Dr. Martin Luther King Day. The next Hotline Update will be on Tuesday, January 16, 2007, at 6:00 p.m. EST.