This is The Wall Street Digest Hotline Update for Tuesday, July 10, 2007 at 6:00 p.m. EST.
Oil and subprime worries pushed stock prices lower today. At the close, the Dow lost 148 points, closing at 13,501, while the Nasdaq fell almost 31 points, to close at 2,639. Oil closed up $0.62 at $72.81 per barrel, and gold closed up $1.90 at $664.40 an ounce.
I am making additional portfolio adjustments today to keep you properly invested in four ongoing bull markets. First, the global economic boom is unprecedented. You must invest substantial portions of your portfolio offshore, where the falling dollar will enhance your investment returns. The global economic boom has created a bull market in the energy sector, where demand is growing faster than supply, and also in commodities, natural resources, and basic materials.
Finally, the U.S. stock market is still the most undervalued market and, hence, the market with the lowest risk. Consequently, you should allocate up to one third of you portfolio in the Fidelity Select funds or the Ultra ProFunds. Global investors are avoiding the U.S. stock market because the falling dollar will continue to diminish their returns. Consequently, we must focus our investment positions in the global bull market; for example, in Brazil, Latin America, Southeast Asia, and the emerging markets.
I have added positions in the energy services sector and the basic materials sector. I have also added the Brazil ETF because of strong economic growth, impressive energy reserves, and also because the Brazilian currency is rising against the U.S. dollar.
You should remain fully invested, with at least 50 to 75 percent of your portfolio allocated to our recommended global/international investments. The dollar just fell to an all time low against the euro, and 26-year low against the British pound. A falling dollar will enhance the return of your offshore investments. Stay close to our telephone/e-mail/website Hotline Updates.
The next Hotline Update will be on Friday, July 13, 2007, at 6:00 p.m. EST.