Money Matters Radio Show - July 19, 2009 - Hour 2

This week TSG seemed like it was in full force. The Markets had a big week. A very big week. The DOW actually rose all 5 trading days closing up 7.3% on the week…That snaps a 4 week losing streak…and is the biggest percentage gain we have seen since mid-March.

Here’s why…ONE…the economic data was good. And TWO earnings numbers were good. That’s a powerful combo!
In fact 10 out of the 12 pieces of major economic data this week came in better than expected…some of them actually point to the economy getting BETTER and not just LESS BAD. Less bad included 522,000 initial jobless claims…getting better, but still not a sign of a robust economy…The Empire Manufacturing index…measuring business conditions in the Northeast were dramatically better than expectations…getting almost back to a no growth, yet no decline level…and building permit and housing starts both went up BIG…that shows potential for real growth and I’ll take it…

We also saw an earnings bonanza from really big name companies…Intel…Goldman Sachs…and IBM. All reporting strong profits, and giving the market HOPE that big companies in America actually GROW and earn money…and perhaps even do so in the future…and that’s what the market, and investing in America is all about…

Today, here’s what’s on tap:
1. As always a healthy does of TSG…for those new to the show, that’s me, telling you something GOOD.
2. Where to find Income & where to find yield…We are going to talk about many of the same areas that we’ve talked about before and this time we’ll talk about some specific examples of where YIELDS are now in different areas of the market.

Weekly TSG July 19, 2009
1. Blow out earnings from Intel, Goldman Sachs, IBM, and forecasts that pointed towards real economic recovery…Intel talked about a pick up across the board for the rest of the year in tech spending…tech spending is a very important component for our economy and GDP…I like the outlook from INTC better than most leading economic indicators…
2. Strong Economic data. Not bad on retail sales…they beat expectations due to higher energy costs which is now really that good…but strip out energy costs rising and they are still not collapsing
3. Jobless claims moderate…522 vs. 553 thousand…that’s still very bad, but getting better…we actually need to create 100K per month to keep the unemployment rate steady…and we saw a real pick up in housing starts up to a 582 k rate and building permits rise…now that means either builders are completely crazy…or they are starting to see a pick up in demand…which means lending could be getting better
…this is real stuff…not green shoots…real branches starting to grow…

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