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The broad Tech sector has rallied significantly from lows and is not cheap by traditional measures.

Economy will pick up steam in the second half, sustaining the already in progress earnings recovery. Also, Cyclical rally targets and equity leadership going into the second half.

Unexpectedly, it seems that the public is coming back to the stock market. Best flow since May 2002. Typically, Main Street takes its time coming back to the party. Continued flow to mutual funds is stock market positive.

Another bullish sign is huge buildup of cash now sitting on the sidelines earning 0.7% in interest. As investors put this money to work, stocks should move higher.

Japan appears to be getting its fiscal house in order. Opportunity may be developing here. We constructed a list of potential Japanese ADRs, and built an index to monitor the situation.

We remain confused by the huge revisions without a valid explanation.

It looks like a strong first half can still lead to a good second half, unless the first half was really good.

In 2003, the NASDAQ has not been as volatile as in recent years, but is still more volatile than the S&P 500.

While the recent spike in insider selling has been well documented by the media as an ominous sign for stocks, the YTD level of net selling is down significantly from recent years.

While the NASDAQ short interest ratio continued to decline, the NYSE ratio increased in June.

Group upgraded to Attractive this month, the result of strong quantitative improvement.

After two strong months, the markets cooled down some in June.

“Risk-free bond returns could become return-free risks.” The Leuthold Group has hedged its fixed income position by shorting U.S. Treasuries. May completely hedge entire fixed income exposure later this month.

Much of the upward price movement in commodity prices, as measured in U.S. dollars, is the result of the weak dollar. A weaker dollar has an inflationary impact on U.S. prices.

This may be one of the few sectors that has the opportunity to provide 20% or more growth in 2003. If inves­tors can get over their fears, they could be rewarded by the Tech sector.

Stocks can go up, when interest rates go up. Rates are expected to rise over the second half of 2003, but stocks have proven they can go up in environment of rising rates.

Does consumer confidence offers any insight into future spending patterns? Also, the case for shorting T-Bonds.

Based on cyclical bull market recovery from 1973-1974 secular bear market. There is still significant stock market upside from May’s month end price levels.

Overall earnings better than expected, as last year’s losses and write-offs turn into smaller losses and even gains in 2003.

Tax disadvantaged REITs might now compete with tax advantaged high yielding non-REITs. We provide a list from a screen identifying high yielding non-REIT stocks.