Stock Market Commentary for 3/7/08

Thursday stocks moved lower again with the DJIA closing down 214 points as we appeared to hit a perfect storm for equities. The US dollar fell as the price of crude oil climbed to over $105.00 per barrel. The European Federal Reserve refused to lower interest rates there, thus bringing European stocks down sharply, and keeping the euro elevated against the dollar. Also significantly, a Netherlands mortgage real estate investment fund received a multimillion dollar margin call it was unable to pay, triggering a selloff in REITs that brought popular American stocks NLY, CMO, and MFA down 20% to 30% in a single day.

Our own Viable Acquisitions Index fell to 112, which, although higher than Wednesday's reading, is down sharply from Thursday's reading. It was probably prevented from going lower by the positive performance of stocks like COINZ (+7%), COINW (+10%), COIN (+4%), VISN (+5%), and selected gold and coal stocks like AEM, JRCC, and GOLD. COINZ has now multiplied in value an amazing 72 times over the past 52 weeks. I am trusting that we may someday see similar results from stocks like LBAS.OB and EMDH.OB that have so far multiplied only 7 and 4 times respectively.

Best wishes, GH

The HHI Index for Friday, March 7, 2008 is as follows:

+6 (strong buy) — COINW, COINZ, ILDS.PK, COIN, JRCC, /

+5 (buy) — MCFD.OB, CTFO.OB, VISN, HQS, WLT, GOLD, /

+4 (hold) — STEN, RIGL, GENC, SATS, CHQ, TITN, MTL, LBAS.OB, AUY, KGC, AEM, BVN, /

Daily Stock Market Commentary is accompanied by a daily Bible Reflection.

• Today's Bible Reflection: Encouragement #20
• Yesterday's Stock Market Commentary
• Yesterday's Bible Reflection: Encouragement #19
• What is the HHI Index?

_{The HHI Index is a list of stock ratings derived from a proprietary computer model and are being shared as a public service with no guarantee of or responsibility for trading success. Readers are strongly encouraged to do their own research and to exercise caution in all trading activity. Click here for an explanation of the HHI Index.}

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