This is The Wall Street Digest Hotline Update for Tuesday, January 23, 2007, at 6:00 p.m. EST.
Good economic news lifted stock prices today. At the close, the Dow rose 57 points, closing at 12,533; the Nasdaq remained flat, to close at 2,431; oil closed up $2.46 to $55.04 per barrel; and gold closed up $11.80 at $645.90 an ounce.
The Leading Indicators Index rose three-tenths of a percent in December and revealed strength in housing and autos. Fed Chairman Bernanke accelerated the growth of the nation's money supply in July of 2006. In December, he accelerated the pace of money growth again. The economy is responding and so are stock prices.
Have you noticed that some Fed governor is always worried about inflation and warning that another Fed funds rate increase is possible? Meanwhile, the Fed Chief is speeding up the money printing presses to create faster economic growth. The Fed is deliberately distracting your attention away from the most powerful monetary policy tool: CREATING MONEY.
Another great boom and bull market is unfolding now. This 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 dollar was down again today.
The next Hotline Update will be on Friday, January 26, 2007, at 6:00 p.m. EST.