This is The Wall Street Digest Hotline Update for Friday, October 12, 2007, at 6:00 p.m. EST.
Stock prices moved up after economic reports were released this morning. At the close, the Dow rose almost 78 points, closing at 14,093, while the Nasdaq gained 33 points, closing at 2,805. Oil closed up $0.61 to $83.61 per barrel, and gold closed down $2.90 at $753.80 an ounce.
Record global liquidity is producing a global boom unlike anything we've seen before. China, India, Brazil, Asia and the emerging markets are leading this greatest of all bull markets. China's money supply is growing at better than 18 percent annually. The August 2008 Summer Olympics in Beijing is the driving force behind a massive expansion effort to convince the world during the telecast of the Olympics that China is a global super power.
Let's take advantage of China's great bull market between now and the August 2008 Olympics. I would expect a correction after the Olympics. Until then, China is a relatively low-risk investment. I am making adjustments in our portfolio of investments to maximize our profits in the months and years ahead.
Stay fully invested! Stock prices in China, India, Asia and the emerging markets will outperform the U.S. stock markets because of the falling dollar. Global/international investments will enhance your investment returns as the dollar declines against other currencies. Stay close to our telephone/e-mail/website Hotline Updates.
The next Hotline Update will be on Tuesday, October 16, 2007, at 6:00 p.m. EST.