This is The Wall Street Digest Hotline Update for Friday, January 19, 2007, at 6:00 p.m. EST.
The economic news is good, but Q4 earnings releases will keep traders on the cautious side. At the close, the Dow dropped 2 points, closing at 12,565; the Nasdaq added 8 points, to close at 2,451; oil closed up $1.51 to $51.99 per barrel; and gold closed up $8.30 at $636.40 an ounce. The dollar was down today.
Technology stocks rebounded today. Economic growth is gaining momentum. Abundant liquidity is driving the economy and will also drive stock prices still higher. Global liquidity is saturated; hence, the global boom. P/E levels are almost half of what they were in 2000 at the market peak. And, finally, the stock market is still undervalued by 28 percent.
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.
The next Hotline Update will be on Tuesday, January 23, 2007, at 6:00 p.m. EST.