Weekly Markets Thoughts - July 29, 2007

This is what I name a rock-and-roll week! Anybody scared? You should not! After a good progress of the broader marketplaces these pull-backs are more than than normal. The hebdomad before, I suggested to take some net income and to bury about the marketplaces until the end of the summer. If you did lose this suggestion, make not acquire nervous as nil major is expected soon. As I already have got said, the marketplaces are entering a time period of a crabwise move which could endure for a couple of months. The recent lessenings are a spot too deep for such as a short time period and we are probably going to witnesser some kind of a bounciness back action next week. Bash not acquire very excited about this either as it will travel nowhere! It would only be a normal accommodation after the autumn down.

On the currencies side, we saw a record low pressure for the $US on July 24th and a bounciness back correct after. It is not easy to interrupt a historical support. The dollar is owed for some remainder and is not going to fall sharply as many analysts suggest. All the currencies had a good tally recently and we can anticipate that the net income taking action will halt them for sometime before the race continues. This in bend will assist the United States dollar for now (but not for long!).

The recent diminution of the long term involvement rates is giving some alleviation for the chemical bonds as well. However, we should not bury that the major tendency is on the up side and this is only a impermanent benefit for the bonds.

The stock marketplaces are under pressure level after reaching new highs for some of them. Dow still have a room to travel down to its good support of 12750 but is improbable to traverse the 12850 mark. The S&P 500, NASDAQ, the TSX Complex and the FTSE 100 indexes are already at their supports and a recoil action is very possible. These several supports are 1450, 2525, 13710 and 6170.

Crude oil is continuing to outperform its pears from the resources sector. It is now approaching its all clip high of $80.64 and have enough steam to attain it and accomplish a new record. However, I believe this is not going to go on now but rather later this summertime or early in the fall. The cherished metallic elements are coming back from their recent tallies and are still in a procedure of confirming the beginning of the long awaited new intermediate moving ridge up. Gold and Ag should not travel bawl $655 and $12.60 respectively. The up side will be confirmed by breaching $685 for Gold and $13.30 for Silver.

We are approaching exciting minutes but for the adjacent calendar month or so the marketplaces will give us the chance to take advantage of our summer. Keep your energy for the autumn action!

Good investment and best regards,

The Investment Philosophy of Warren Buffett - In 23 Quotes

Warren Buffett is the most successful investor of our time, perhaps of any time. He is famous for his pithy quotes, which often appear in his annual letter to shareholders.

Taken together, his quotes pretty well sum up his investment philosophy and approach. Here are his best sound bites of all time on being a sensible investor.

1. Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.

2. Investing is laying out money now to get more money back in the future.

3. Never invest in a business you cannot understand.

4. I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

5. I put heavy weight on certainty. It's not risky to buy securities at a fraction of what they're worth.

6. If a business does well, the stock eventually follows.

7. It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

8. Time is the friend of the wonderful company, the enemy of the mediocre.

9. For some reason people take their cues from price action rather than from values. Price is what you pay. Value is what you get.

10. In the short run, the market is a voting machine. In the long run, it's a weighing machine.

11. The most common cause of low prices is pessimism. We want to do business in such an environment, not because we like pessimism, but because we like the prices it produces. It's optimism that is the enemy of the rational buyer. None of this means, however, that a business or stock is an intelligent purchase simply because it is unpopular; a contrarian approach is just as foolish as a follow-the-crowd strategy. What's required is thinking rather than polling.

12. Risk comes from not knowing what you're doing.

13. It is better to be approximately right than precisely wrong.

14. All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies.

15. Wide diversification is only required when investors do not understand what they are doing.

16. You do things when the opportunities come along. I have had periods in my life when I have had a bundle of ideas come along, and I've had long dry spells. If I get an idea next week, I'll do something. If not, I won't do a damn thing.

17. [On the dot-com bubble:] What we learn from history is that people don't learn from history.

18. You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.

19. You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.

20. You should invest in a business that even a fool can run, because someday a fool will.

21. When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.

22. The best business returns are usually achieved by companies that are doing something quite similar today to what they were doing five or ten years ago.

23. Diversification may preserve wealth, but concentration builds wealth.