This is The Wall Street Digest Hotline Update for Tuesday, November 13, 2007, at 6:00 p.m. EST.
Bank of America said it has more than $15 billion in net exposure to collateralized debt obligations (CDOs), but stock prices still soared today. At the close, the Dow soared almost 320 points, closing at 13,307, while the Nasdaq jumped almost 90 points, closing at 2,673. Oil closed down $3.22 to 91.42 per barrel, and gold closed down $6.60 at $801.10 an ounce.
The smart money allowed the Dow Average, the S&P 500 and the Nasdaq to drift down to the 200-day moving average before releasing what appears to be a coordinated buy program to take the market back up to new highs.
Global plans to build nuclear power plants for electricity are growing. China has a plan to build 200 nuclear plants to electrify China. The price of uranium is going to soar. Let's purchase the Nuclear energy ETF, Market Vectors Global Nuclear Energy symbol (NLR). Do not bottom-fish in the financial sector. Do not buy banks or brokerage houses. China and the emerging markets should have a big bounce tonight.
The condo/housing sector will not bottom until late 2009. In the meantime, buyers of foreclosed properties are purchasing them for 50 to 60 percent of the selling price. Home and condo prices will continue to fall as more foreclosed properties add to the housing glut.
Stay fully invested! Stock prices in China, India, Asia and the emerging markets will outperform the U.S. stock market 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, November 16, 2007, at 6:00 p.m. EST.