This is The Wall Street Digest Hotline Update for Tuesday, October 16, 2007, at 6:00 p.m. EST.
Worries over rising oil prices and the housing market pushed stock prices lower today. At the close, the Dow fell almost 72 points, closing at 13,912, while the Nasdaq lost 16 points, closing at 2,763. Oil closed up $1.48 to $87.61 per barrel, and gold closed down $0.20 at $762.00 an ounce.
September Home Starts in Southern California plunged 30 percent from August and 48.5 percent from last year. The Consumer Price Index will be released tomorrow morning at 8:30, along with housing starts and building permits. The inventory of homes and condos for sale continues to rise, along with foreclosures. Numerous realtors do not expect a bottom in housing until 2009.
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.
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 Friday, October 19, 2007, at 6:00 p.m. EST.