The market has had a good run since September 1, and earnings season is always challenging, so we’re quite prepared for a substantial market correction here. Yet we remain very bullish overall, as our market timing indicators are still positive, and investor sentiment is still only lukewarm. Still, we know the wisdom of keeping our portfolio focused on leading stocks, so on a special hotline last night, we sold VMware because of the stock’s two abnormal declines in the past three weeks. In its place we bought Google, which is in the midst of a major transition into new high-growth business lines. The stock has a high price tag, but you should focus on the amount of money you’re investing, not the number of shares. There are no further changes in today’s issue. The Model Portfolio has eight stocks, and there’s a feature on new issues on page 5 that will pique the interest of aggressive investors.
