Stock Picks for September 17, 2007

Weak factory and retail data is providing more ammo for the fed to lower rates as housing continues to weaken suggesting the economy is slowing.  We do believe that there is enough data for the fed to lower rates at this point, but certainly not definite that they will.  There is significant risk for a surprise move by the fed to do nothing, but probably not. Do not underestimate the announced troop pullout positive effects on the market and our stock picks.  If the pullouts materialize and the Iraq war comes to an end, this could have far reaching positive effects for all markets, not just the US. We are just starting to see how widespread some of the lending abuses were.  Should get interesting from here as lenders are held accountable. We still plan a tech stock pick next week, so stay tuned!