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| Fellow Investor, Bad news from Germany this morning. Europe's one economic bright spot reported lower than expected GDP growth for the second quarter. This shouldn't be too big a of a surprise, though, because we've known that Europe has been struggling with debt, and austerity measures are causing big slowdowns in the afflicted countries. Greece, for instance, saw its economy shrink 6.9% in the latest quarter.
On the upside, industrial production expanded more than expected. The 0.9% gain was the biggest jump this year and the first increase since March. This is related to the earthquake/tsunami that Japan suffered earlier in the year. That natural disaster disrupted auto manufacturing. The industrial production number was also helped along by an increase in consumer spending.
Economists have been predicting (hoping?) that growth will accelerate in the second half of the year. And this manufacturing data, along with consumer spending, is the first bit of good economic news we've seen in a while.
Given the relatively low valuations, we could see a good rally this fall. Of course, we must keep an eye on earnings estimates. Today's low valuations would not be so low if analysts change their earnings expectations.
I want to share with a few thoughts from TradeMaster Market Forecast's Jason Cimpl:
"...in the five times the market swayed 4% or more on four consecutive days, it went on to rally by nearly 30% over the next year three times, while it increased 7% and declined 12% once each. In light of those facts, there is every reason to believe that over the long term the bullish trend is well intact.
At the same time, I think the bears made a statement by ripping apart 1250 support with ease, and I don't think the bulls will take it back any time soon... | 
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| How to profit when the market dips The Dow Industrials first broke 10,000 on March 12, 1999. Ten years later, on March 12, 2009, the Dow closed at 7,170.  That's led many to refer to the last 10 years as America's Lost Decade. And it's led many investors to conclude that the American economy is broken and that investing for growth is a fool's errand. Maybe you've felt this way yourself from time to time. After all, how will America overcome 10%+/- unemployment? $1 Trillion+ in annual budget deficits? Record home foreclosures? And most importantly, how can you, the individual investor, profit in the midst of this? Invest in quality American companies, and buy their stocks at a discount. You can never go wrong investing in Great American companies, especially in times of crisis. Find out how to spot these companies and how to buy them for a fraction of what everyone else is. Click here... | 
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Market Snapshot
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| | US Markets - August 15 Close
| | Dow Jones
| 11,482.90 | +214 | (+1.90%)
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| | S&P 500
| 1,204.49 | +25.68 | (+2.18%)
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| | Nasdaq
| 2,555.20 | +47.22 | (+1.88%)
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| | Currencies
| | EUR/USD
| 1.445 | +0.019 | (+1.398%) | | 
| | USD/JPY
| 76.71 | -0.075 | (-0.097%) | | 
| | GBP/USD
| 1.639 | +0.011 | (+0.684%) | | 
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