Author: Gary Harloff
Gary Harloff owns TBH in his Covestor Opportunistic ETF model.
September 27, 2010: The government’s NBER committee told us this week that the recession officially ended in June 2009. Their call is only 15 months late. The dreaded double dip appears to be “off the table”.
Housing remains weak and so do all the jobs related to this sector. Other sectors are recovering, as has the U.S. equity market. Leading the way are technology, Internet, telecommunications, and utilities. The U.S. dollar is going down. Weaker dollars are the way our government is paying for massive spending without the corresponding income. Not surprisingly, precious metals continue their upward appreciation.
We maintain our buy signal even though the market experienced high volatility during these last several weeks. The S&P500 index is clearly in an uptrend at this time.
Style box absolute values are showing increased strength of growth over value.
The rotation back into equities, from bonds, is occurring. Investors are on the hunt for returns higher than bond rates. Judging by our large number of investment indexes with high HVI numbers, the market participants have concluded this recovery is for real. Confidence is back.
The U.S. and emerging markets are both attractive.
We like
Aruba Networks (ARUN), F5 Networks (FFIV), Hawk (HWK), Advanced Auto Parts (AAP),
Vector Group (VGR), Telecom Brazil (TBH), Cohen & Steers Reality (ICF).
Because the markets can turn quickly, be ready. May the market be with you!
