Stock Market Commentary for 4/28/08

This past week was another challenging sequence of trading sessions for investors. Consumer confidence came in around 62, at its lowest level in 26 years, and the Royal Bank of Scotland suffered an 11 billion dollar writedown due to the US subprime mortgage crisis. In addition, I believe I read that US job losses this past year have exceeded half a million. Equally worrisome is the news that oil rose to a high of $119.90 per barrel, and 27 of the 50 states are clearly in recession by all definitions. Beyond this we had earthquakes in Nevada and continued fighting in the Middle East. The price of food has risen to the point where several Asian and African countries are now unable to provide rice and other staples to their people. Then too, the volatility in the stock market has made it extremely difficult to interpret trends. At the last posting our Viable Acquisitions Index reached a record high reading of 404, and then it fell to 121, and it now stands at 232 for Monday's open. You may recall that this index reflects market strength as a weighted tally of stocks with strong earnings that are approaching new highs. Overall, the past six-month period has been one of the most challenging times for investing that I can remember.

On a more positive note, we are told that the tax rebates of $600.00 per person will begin to go out on Monday as a measure to stimulate the economy. This week the US dollar has also shown some slight signs of strengthening against other major currencies. Equity futures at this time are positive for Monday's open. And we are reminded that, in the vast majority of the past 11 US recessions, the stock market actually registered gains. With regard to painful gasoline price increases, this certainly will have the effect of reducing carbon emissions and global warming and increasing fuel efficiency and investment in alternative energy production. And, especially when the economy declines, there is often a societal inclination to turn to God for spiritual answers to replace inadequate and failing material dependencies.

Best wishes, GH

The HHI Index for Monday, April 28, 2008 is as follows:

+7 (very strong buy) — PDO, LL, CWEI, UFPT, CLF, AREX, BUCY, SWN, /

+6 (strong buy) — WSCI, MMR, POT, AKS, SCHN, SGY, HA, HP, DAR, RTP, /

+5 (buy) — VISN, GENC, XIDE, BPSG, CLR, RDTA, MTL, FEED, FSLR, MLNM, CF, WLL, ARD, /

+4 (hold) — JRCC, SOL, ANR, REXX, GEOI, VHI, CMP, HSVLY, MOS, EOG, AXYS, /

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

• Today's Bible Reflection: Reflections on Psalm 4
• Yesterday's Stock Market Commentary
• Yesterday's Bible Reflection: Reflections on Psalm 3
• 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.}

Back To Top