In our August 17 blog we boldly predicted the economy would grow by at least 3% in the third quarter. Thursday’s report showed growth at 3.5%. We also said when that happens stocks would be far higher. Back then the Dow was at 9135. Now it stands at 9700. I expect slower growth in the fourth quarter, but still growth nontheless.

Those who invest in the market based on today’s news will once again be on the wrong side. Notice the Dow’s crossing of 10,000 was not a new buy signal. It was a time of profit taking. The positive GDP number was not a new buy signal. It will likely be a time to reduce market exposure. We moved client portfolios away from fully invested on October 15.

You must be logged in to post a comment.

Recent Comments

    Archives

    Categories

    Vomund Investments, LLC
    889 Alder Avenue Suite 202
    Incline Village, NV 89450

    US Mail:
    PO Box 5037
    Incline Village, NV 89450

    775 832 8555

    At Vomund Investments, we tailor our managed accounts to meet the client’s comfort level using stocks, exchange-traded funds (ETFs), preferred stocks, and exchange-traded debt. Most portfolios include lower-risk, better-rated vehicles with yields of five percent or more.

    We also hold some higher-yielding stocks with both dividend growth and capital gains potential. Prices fluctuate of course, but their volatility is less than that of most equities.

    Whether you are investing primarily for growth to reach retirement, or for income to enjoy your retirement, our managed account program deserves a closer look.