Market Update 11/30/2005
Huge increases in the manufacturing sector, new home sales and consumer confidence are responsible for creating a buoyant backdrop for the financial markets that may well provide the much-needed follow through to bring Santa Claus to Wall Street.
A significant drop in gasoline prices brought consumers roaring back with their optimism and their wallets as factory orders jumped from September’s 2% decline to a whopping 3.4% increase. Not to be left out of the buying frenzy, orders for new homes jumped by 13% last month, the largest increase in 12 years.
Such an increase could well prove to be the last gasp for the housing sector as buyers turned up in droves to take advantage of the mortgage rates which are expected to climb much higher by this time next year.
So, good news for the economy and a benign reporting from the release of the notes of the most recent Fed meeting could definitely keep the Grinch from stealing Christmas and positive year-end closings for the major indexes.
A sharp ascent for the markets proves that the latest buy recommendation to my Successful Investing subscribers was, once again, exquisitely timed. And our transition from value to growth based on the rotation in leadership in the markets will serve us well in the strong economic climate we find ourselves in now.
Are you invested in the sectors that pack the most momentum? Do you know how to determine the answer to that question? If not, you owe it to yourself to try Successful Investing at no risk to you for 6 months.
I’ll bet you could make more money. The key to Successful Investing is to be in the best-performing sectors at the times when the market has the most momentum.
The current market presents incredible opportunities for profit, but it also demands absolute vigilance. Is your portfolio prepared to make the most out of this market? Are you prepared to get out of the market to protect profits if the current optimism hits a wall?
That’s the biggest risk in a market that has short-term strength. Unprepared investors can easily be duped into believing that weakness in the market is short-lived and they will frequently buy into a market that has reversed course. That’s where Successful Investing really proves its worth. By paying close attention to the trends and market momentum, we can ferret out the difference between a dip and a decline.
That’s how we have avoided every bear market decline in our 28-year history. That’s also how you can make more money and keep it. Try it now by clicking here:
Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
