"THAT'S JUST MY OPINION" - VOL. 17
Taper, Taper, Taper - get it through your heads viewers - Tapering does not mean tightening!!!
Let mean repeat that fact - tapering does not mean tightening!!!!!!
This is very important - why - I'll tell you why. The FED is not as such a government agency - they are independent of all the chaos in Washington! We had a great jobs report today - did any body consider the job hiring for the Christmas holidays? Do you think that may have skewed the numbers?
The FED is not stupid - they will not move on just one number - they will wait until the employment numbers come out in January and February of 2014! Also, like I said in my last blog, they are waiting to see what Washington will come to an agreement on our economic future! What are the odds of that? That's why no taper till March of 2014! Besides that is the same time Janet Yellen takes over as the FED chairwomen! Remember taper does not in anyway mean FED tightening!
For all you people that do not remember past interest rates - I bought my first house in 1972 with 20% down and a 30 year fixed rate of 7and1/2% rate - rates today are chump change - 4 years after I bought my house rates went to 16%!!!!!
So I laugh when everybody gets nervous when the 10 year interest rate is now 2.8%!!! Who cares - its cheap money!!!
So what does Washington need to do to get this country moving to unprecedented prosperity?
Easy - lower corporate tax rates, since the US has the highest corporate tax rates in the world, so we can compete with exports - so the US is not at a disadvantage exporting our products to the world!
However, Washington is too stupid to do something smart!! Silly Me! How about passing legislation to start the Keystone pipeline, so the US could get energy independent and not have to import oil from people that hate our guts!!! Silly Me!
How about giving a tax credit to all truckers with 18 wheelers to change their polluting diesel engines to natural gas engines and creating millions of jobs putting natural gas pumps in all the gas stations in the US. Silly Me!
So why was the DOW up 198.69 today? I was not just the jobs report - it's a combination of events.
Let's start with stock buybacks and dividend increases.
JNJ raises it's dividend along with a buy back program.
Microsoft raises it's dividend by 22% and a $40 billion buy back program.
IBM raises it's dividend by 12% and adds a $5 billion buy back program.
AAPL to buy $100 billion buy back program and raise it's dividend.
This list will increase on a daily basis - and you wonder why I say the market is still going a lot higher!
Now, lets look at 2 stocks that are undergoing year end tax selling
CLMT & MFA - now that selling should soon.
Now lets look at the stocks on my watch list.
Yahoo - this week closed @ $38.86 up $1.88 or 5.08% for the week
MU - this week closed $22.31 up $1.21 or 5.73% for the week
ABBV- this week closed $51.35 up $2.90 or 5.99% for the week
LULU - this week closed $69.84 up .12cents or .17% for the week
Now lets look at some losers
C -this week closed $51.49 down $1.43 or 2,7% for the week - this stock is a great buy at these prices!
ABT - this week closed $37.53 down .66 cents or 1.73% for the week - this stock is a bargain in this area.
BIP - this week closed $37.29 down .65 cents or 1.70% for the week - this stock is also a bargain in this price range.
T - this week closed $34.53 down .68 cents or 1.93% for the week - this stock is also a bargain in this price range.
"THAT'S JUST MY OPINION"
Len Dwelle-
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