8/2/04
Hi,

The stock market is weak, the Dow has broken through 10,000 and the NASDAQ has broken through 1900. Both indexes have a long way to go, though. If Bush appears to be in front, and winning (after the Republican convention), the market will have one last gasp up - the Dow closing in on recent highs and the same for the NASDAQ - then heading lower after the election (into 2005 & 2006). The market does not like Kerry-Edwards, essentially because Kerry wants to raise taxes on those earning over $200,000 per year and cancel the dividend tax of 15% and capital gains tax of 15%.

The economy continues to appear weak as well. In late May/early June, sales all over the US started tracking lower, collections substantially reduced and business health in general appears to have diminished. Not only have I seen this with my clients, but most public companies reporting, who have broken out sales by the month, indicate a slowness commencing in early June going forward.

Gold should be finished consolidating - if you haven't taken a position already, NEM, AU & BGO offer great value at reasonable prices.

Arnold

Copyright 2004 Arnold's Ramblings Inc., All Rights Reserved.
- posted by Arnold @ Monday, August 02, 2004