July 31, 2011 Moneytalk Update:

Bob Brinker remains fully invested.  Last Sunday, July 31, 2011, Bob Brinker said it was amazing how the stock market had taken all of the debate over the debt ceiling in stride.  He said the S&P 500 was "setting about 5% below its closing high for the year, which is truly amazing."   

EC: The closing high for the year for the S&P500 is $1,363,61 on April 29, 2011.  You can move your mouse along this S&P500 chart to read the closing highs by date.  Friday the market closed at 1199 (See Market Update below) for a decline of 12.0% from the April 29 closing high.

Bob Brinker's Marketimer newsletter portfolios #1 and #2 have been 100% equities (fully invested) since March 2003.  See Bob Brinker's Asset Allocation History

Bob Brinker said that back in June, there was a caller who asked him if he should get out of the market when it was at 1270 to wait for the dust to settle over this debt ceiling issue.  Brinker said the market was at 1292 and if that individual had sold out, he would now be faced with either sitting and waiting it out or buying it at higher levels.  Bob said he was taking advantage of dollar cost averaging weakness lately and in fact bought some more into the market on Friday (July 29, 2011).

Of course, the market is now at 1292, a couple of percent higher than when that call came in at the end of June. So this is what happens. If that individual would have sold out at 1270 at that time, he would be faced now with either sitting it out or re-entering at a higher level.

Bob Brinker went on to say he was not part of the "panic crowd" and said he has repeated over and over all summer that he did not believe the US would default on its debt obligations and this is exactly how it looks like it will work out.

Historical Price Data for $SPX, the S&P 500 Large Cap Index

Day     Date       Open       High        Low      Close      Volume
=== =========== ========== ========== ========== ========== ===========
Fri 05-Aug-2011  1200.2800  1218.1100  1168.0900  1199.3800  6446630912
Thu 04-Aug-2011  1260.2300  1260.2300  1199.5400  1200.0700  5468922368
Wed 03-Aug-2011  1254.2500  1261.2000  1234.5600  1260.3400  4217014784
Tue 02-Aug-2011  1286.5600  1286.5600  1254.0300  1254.0500  4040342784
Mon 01-Aug-2011  1292.5900  1307.3800  1274.7300  1286.9400  3367536128
Fri 29-Jul-2011  1300.1200  1304.1600  1282.8600  1292.2800  3520111104
...
Fri 29-Apr-2011  1360.1400  1364.5600  1358.6900  1363.6100  3626909696

August 6, 2011 Market Update:

S&P 500	Intraday		S&P 500	Closing
Date of last bull market high	05/02/11		Date of last all time high	04/29/11
Last Market High	1,370.58		Last Market High	1,363.61
Date of last low	08/05/11		Date of last low	08/05/11
Intraday Low	1,168.09		Closing Low	1,199.38
Decline in Points	202.49		Decline in Points	164.23
Decline in %	14.8%		Decline in %	12.0%

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