FISHING EATING AND RELAXING

Yesterday afternoon the men went fishing and the women went shopping. I don't know how much the women spent but the men caught 17 keepers.

Summer has arrived. The stock market is in its traditional slow down. Folks will talk about a summer rally but between now and October, don't expect too much to happen.

My family will stay fully invested. We know that bottoms are often made in October but stocks are cheap. It is a mistake to get out now with hopes of buying at lower prices in the fall.

Many folks have declared SS reform to be dead. When the Senate is willing to block the Presidents staff appointment to the UN, it is easy to assume that the Senate will not cooperate on fixing Social Security.

The battle is not over. Americans understand that Social Security is underfunded. It needs to be fixed. Indexing benefits as proposed by a Democrat and supported by the President may be the next step. After the "fix is in", the idea of personal lock boxes for the current surplus will be difficult for Democrats to oppose.

Energy legislation is moving forward. Buffett and others are ready to invest billions in modernizing our energy infrastructure. New laws will turn capitalism loose to solve the energy problem. Middle East oil will be imported for many years to come at competitive prices and as a declining percentage of our total usage.

In summary, it is hard not to be positive. The weather is outstanding in Myrtle Beach, the markets are behaving and world wide the average standard of living is increasing. Life is good.

BUY THE BULL! BULL MARKETS DO NOT GO UP EVERY DAY! THE DON'T GO DOWN A LOT EITHER. A MARKET THAT PULLS BACK, LETTING BYSTANDERS GET ON BOARD IS NOT A BULL MARKET. THIS MARKET HAS SEEN ROTATING SECTORS BUT THAT DOES NOT MEAN IT IS A GREAT TRADING MARKET. IT CONTINUES TO TRADE LIKE A BULL. A BREAK OUT TO NEW HIGHS WOULD CONFIRM THE BULL. SEVERAL OF OUR ACCOUNTS ARE SITTING NEAR ALL TIME HIGHS. WE LOOK FORWARD TO THE BREAKOUT.