August 30: It appears we bottomed in June. After which July was characterized by a stronger than usual bear market rally. At this point we are back in the FED’s grip of higher interest rate expectations and with no growth or value catalysts in sight that could shift us into another Bull market. Consequently, it appears that floating rate funds benefiting from higher interest rates are the most in favor. A discounted floating rate fund such as VVR that currently pays around 8% monthly is an excellent choice, for example. LEI’s are nearing a recession signal, yet labor markets and consumer spending are still strong enough to prevent that from occurring. This week will provide important economic data.

Some stocks that should do well over the next several months are: DINO, YPF, TH, GSM, PBF, and YELL. Growth and Income stocks for the same period include: BBDC, BCSF, BXMT, CGBD, DNBBY, IVR, NEWT, ORCC, OROVY, PBR, PFLT, and TCPC. Over the previous 3 months, the 3 top ETFs were: XLY, FXN, and VCR. As always, good investing!