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Motley Fool Hidden Gems Investing

Motley Fool Money: 07.24.2009

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 24 July 2009

⏱️ 14 minutes

🧾️ Download transcript

Summary

Existing home sales rise for the third straight month. The Dow crosses 9,000 for the first time since January. And Amazon, Apple, Chipotle, eBay, Ford, JP Morgan, McDonald’s and Microsoft report earnings. So what does the week’s big business news mean for investors? In this installment of Motley Fool Money, we’ll give our take, offer up 3 stock ideas, and talk about the relative merits of buying shoes online. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Welcome to Motley Cool Money, I'm Chris Hone, I'm joined by Motley Full Senior Analyst

0:07.4

Seth Jason, James Early, and Shannon Zimmerman.

0:10.2

Guys, happy Friday, happy Friday Chris.

0:12.4

A lot of companies reporting earnings this week, including Amazon, Apple, Chipotle, eBay,

0:16.8

Ford, McDonald's, and a little tech startup named Microsoft.

0:20.9

We'll get to those stories, offer up three stock ideas, and talk about the relative merits

0:25.5

of buying shoes online.

0:27.2

But we start with Mr. Market.

0:29.5

This week saw the Dow cross 9,000 for the first time since January, and news that existing

0:35.0

home sales were up for the third straight month.

0:37.8

So Shannon, a lot of talk to things are turning around.

0:40.0

You buy them?

0:41.0

No, to me, this is like a short-term fling that has worked out much better than anyone

0:44.8

expected, and so investors have stuck around longer than they should have.

0:47.6

Some things aren't meant to last, and this rally is one of them.

0:50.9

For all the good economic data that came out this week, and not as bad as expected, economic

0:55.4

data that's come out over the last several weeks, bad news remains.

0:58.9

Some sales may be up, but home values are still more of them.

1:01.4

For example, personal income, still in the doldrums, unemployment still set to hit double

1:05.5

digits very soon, and in this, the most consumption-based of all economies, consumers are saving,

1:09.9

not spending.

1:10.9

That adds up to a rally that has probably overshot the relief mark, and is kind of in

...

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