07/16/2007

Dow 14,000? Phillies 10,000!

Hello:

The Phillies became the first pro sports franchise to reach 10,000 losses after losing on Sunday. Another record that may be broken soon is the 14,000 mark for the Dow Jones Industrial Average. What could be causing these soaring prices on the Dow?

Some theories include:

A. The stock buy back programs of major corporations are reducing the amount of shares thereby limiting supply.
B. The low value of the US Dollar on currency exchanges makes domestic equities look like potential bargains
to international investors.
C. Anticipation of possibly improved earnings reported for the second quarter.
D. Investment dollars being redirected from Real Estate to equities.
E. Merger and Acquisition (M & A) activity.

Our theory is that it is most likely a combination of all of the above. We prefer that there are a number of legs to this platform so that market rallies are not based upon one set of circumstances.

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Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager