SEPTEMBER 05, 2008 - The Fed will not raise rates after today's employment report that showed unemployment rising to 6.1% - there will be a call for them to lower rates now. Would continue buying recommended banks and brokers. The July 15 lows of banking and consumer stocks will hold - commodity stocks will go lower but think natural gas has bottomed. It may be getting time to buy the semis (SOX) that hit a five year low today. Oil has not bottomed yet.
medicare HMO ("Medicare Advantage") is an "orphan" (has no sponsorship) - recent IPO had to lower guidance - now despised - was hurt by AETNA's drop yesterday - should have bounced back (like AETNA & other HMO's) - stock now cheap - medicare spending should grow at a compound rate of 9.3% next 10 years - been adding members at a really torrid pace (64,000 in 2004 to 102,000 in 2005) - has a lot of room to grow - medical loss ratio at under 79% (better than the majors) - is too cheap - buy it sooner than later!
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