The market’s rally since the start of September has been broad, persistent and powerful, with the major indexes and leading stocks acting very well. All of our market timing indicators are now bullish, and we believe higher prices are in store in the weeks to come. That said, in the near-term, we also think a pullback and consolidation (possibly heading into earnings season) is likely. But the good news is that, because of the strength seen the past three weeks, any weakness should provide a good buying opportunity. In tonight’s Letter, we write about all of our Model Portfolio stocks, most of which are acting very well. We highlight the usual crop of new ideas on page 4 (including a unique recent IPO), and we write a piece on what P/E ratios mean for growth stocks on page 5. There are no new additions to the Model Portfolio tonight, but we urge you to stay tuned; we’re looking to add some new stocks at logical buy points in the days ahead, especially if the market falls a bit.
