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Dear Reader,
Before I get to our extended Guaranteed Return Offer, I'd like to talk
about this morning's fabulous Intel earnings release and what it means
for the broader market.
If you missed it, Intel announced earnings that were 4 times higher
than they were last year and they beat the analysts' estimates very
easily and on top of that raised their earnings guidance for the next
year. Terrific stuff! It shows that business is back (and to a lesser
extent consumers, but that will soon come) buying computers and
electronic equipment that require computer chips having put off
purchases for over two years to cut expenses and save cash. This is
one of the best indicators that the world economy is recovering from
the devastating Global Financial Crisis.
Obviously, when Wall St opens tonight we'll see tech stocks do very
well as the sector is always buoyed by any good announcements from
Intel.
But it's not just Intel that's doing well, the feeling of the general
markets, as indicated by the fear or volatility index, the VIX hasn't
been lower in two years. It now sits at 15 which is where it would
normally be in a bull market. This means professional traders and
investors are very comfortable where the market is and are prone to
keep this bull market going for the time being. Although, I do expect
a minor correction in coming weeks as is perfectly normal in a
situation such as this. I see these little "glitches" as nothing more
than opportunities to buy more stocks, and as you well know, I have
been pounding the table about tech stocks now for about a year.
Well, after the fabulous run they have had am I still bullish?
Yes, but now I'm starting to look towards the next phase of the
technology "boom" and this will encompass more companies at the
cutting edge of technology such as those suppling chips and parts for
things like Apple's new iPad and new advances in networking and
wireless technology. However, I'm not forgetting other great companies
involved in the mining industry and infrastructure - they have a role
to play in the economic recovery too and will be increasing their
earnings over the next year.
The next year or two will be an exciting time to be an investor.
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