(FITB) - (CLE) - (C) - Investment Quality Trends newsletter - Sampling of the "Timely Ten"

Kelley Wright, editor of the Investment Quality Trends newsletter, says the fact that there will be a next up cycle is a fore gone conclusion. Find out what this featured expert has to say about the housing market and the yield curve. Afterward, take a look at some of the stocks that were plucked from Wright's Timely Ten list. Commentary from September 1 Much has been written about the decline in the housing market and the inversion of the yield curve. Most conclusions are that the combination of the two guarantees a recession. The much publicized statistics for housing do paint a gloomy picture. That there is a correction underway in housing should come as no surprise, however. No market can go straight up for an extended period of time without corrective consequences. Many economists are fretting about where the growth in GDP will come from now that housing is correcting. The answers remain to be learned, but, Kelley Wright will note that the discussion about the future source of GDP growth takes place in each economic transition. In the end, the resiliency of the American economy is truly amazing; somehow we always find our way through. As for the yield curve, the current environment can continue for quite some time without adverse consequences. What would be a cause for concern is if short-term rates begin to decline quickly in relation to long term rates. Declining short term interest rates generally indicate the need for economic stimulation. If Wall Street really begins to believe there is potential for a recession, Wright and his team's Undervalued category will swell with new buying opportunities. These opportunities will eventually provide the foundation for profits in the next up cycle. That there will be a next up cycle is a fore gone conclusion. Economies and markets always ebb and flow, thus cycles always repeat. Wright and his team stand ready. A Sampling of the Timely Ten Fifth Third Bank (FITB) is a registered financial holding company and a multi-bank holding company. They engage primarily in commercial, retail and trust banking, data processing services, investment advisory services and leasing activities. In addition, the company provides credit life, accident, health and mortgage insurance, discount brokerage services and property management for its properties. Claire's Stores (CLE), through its wholly-owned subsidiaries, is a leading mall-based retailer of popular-priced fashion accessories and apparel for pre-teens and teenagers. The Company's operations are divided into three principal product categories: Jewelry, Accessories, and Apparel. Jewelry consists of costume jewelry, including earrings and ear piercing services, while Accessories consists of other fashion accessories, hair ornaments, totebags and novelty items. Apparel includes name-brand as well as private label shirts and pants. Citigroup Inc. (C), the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home