This is The Wall Street Digest Hotline Update for Tuesday, January 16, 2007, at 6:00 p.m. EST.
A flood of economic news due tomorrow kept traders on the sidelines today. At the close, the Dow added 27 points, closing at 12,582; the Nasdaq lost 5 points, to close at 2,497; oil closed down $1.78 to $51.21 per barrel; and gold closed down $1.00 at $625.90 an ounce.
Stock traders decided to take a look at tomorrow's economic reports before investing today. The December Producer Price Index will be released at 8:30 a.m. tomorrow, December Industrial Production will be released at 10:15 a.m. and the Federal Reserve Beige Book will be released at 2:00 p.m.
The stock market is undervalued by 28 percent. Record liquidity is up 9.5 percent compared to last year and 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 next Hotline Update will be on Friday, January 19, 2007, at 6:00 p.m. EST.