The unsettled equity markets has had a slightly detrimental effect on our virtual fund, although we are still looking at growth of around 1.36% for the month as against 0.54% for the benchmark S&P. We are not too phased by this, as most of the stocks have their stops at breakeven, so even a larger correction should not cause much in the way of losses.
Having reviewed the stocks in the virtual fund, we have seen some further gains in what was a rather flat day for the S&P. In fact the virtual fund has met and exeeded the 3% target level for the month already.
Following on from my previous note, we have seen all but one of the stock price targets trigger. In fact if you had been happy to take the break out on Newmarket Corp, you would have seen them all trigger.
We have a relatively quiet week ahead in terms of economic data. The key focus in the US will be on the housing market as we see the existing and new home sales figures. In the UK we have already seen the (bail-out) liquidity opportunities for the banks: you can read the offical details from the Bank of England site. Later in the week we will see the Bank of England minutes from the Interest Rate meeting, the retail sales and the prelim GDP figure.
As we had two trades triggered ointo the fund I have updated the virtual fund/stock watch.
The stock list published in the newsletter are all still looking pretty healthy. I have added some notes to these stocks, which you can find on the watchlist tab of the spreadsheet.
For those not quite sure the relevance of the economic reports, we have covered this in this months copy of the newsletter.
Key reports are highlighted in bold below. It is the key week for inflation reports for both the UK and US. Whilst they remain important, it should be remembered that they be ignored to some degree as it is becoming apparent that cheap money is more important that controlling inflation. If we get a high inflation figure, we may actually get an inverse result in the forex markets, i.e. high US inflation may result in a drop in the dollar. This would be due to the fact that uncontrolled inflation is bad for an economy.
If you are not sure what the financial reports actually mean, it would be worth you reading this month’s newsletter, as we will be covering what the most import reports are and what they mean.If ever there was a more important time for the members of the G7 to come up with something meaningful, now is the time. The group which are charged with discussing global economic issues, which include world currencies and exchange rates, meet on Friday. With the dollar so weak against most currencies, and the global liquidity problems in the credit markets, there has not been a more important meeting for some time.
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