Thursday, September 21, 2006

A Little Out Of Fashion

The market is telling us that the economy is slowing down. The most obvious signal is the inverted yield curve. Today we also got word that the Philadelphia Fed announced that its manufacturing activity fell to a negative reading. One data point does not tell the entire story, but when you add all the pieces together, it’s pointing to an economic slow down. I sold J. Crew (Ticker: JCG) today and pocketed a net gain of 11.20%. I used the proceeds from J. Crew to purchase some Goldman Sachs (Ticker: GS) @ $168.59.

Here's a look at the yield curve:

On a side note, what’s up with MasterCard International (Ticker: MA)!? This stock just keeps going up and up…. I’m hanging onto to this one tight. I have a strong conviction that this one is going to be a multi bagger.


At September 24, 2006, Anonymous Steve said...

It was only a few months that the entire world was concerned about US Inflation. It is amazing how quicky the story can change.


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