(GY) - (BOW) - (LLY) - Richard Rhodes, Rhodes Report newsletter

Richard Rhodes, editor of The Rhodes Report newsletter, discusses the Fed Vice-Chairman's recent hawkish comments. Discover what was stated regarding the economy, housing, inflation and interest rates. Then check out some of this featured expert's holdings from his Paid-to-Play Portfolio. THE FED VICE-CHAIRMAN SPEAKS LOUDLY AND CLEARLY: from January 9 And when he does'we listen; we listen very carefully as his comments carry great weight with the investment community. Yesterday, his comments were rather 'hawkish'. He continues to see very few spillover effects from the housing bubble into other demand drivers; and, he also noted that the slowing in housing may be near an end., and he was rather confident that 'the economy appears to be weathering the downturn in housing with limited collateral effects.' On the inflation front, he noted that the U.S. economy is 'poised' for moderate growth and lower inflation; but he further noted that there is 'no guarantee' it will remain as such. He went on to say that a period of 'below-trend' growth may ease tight labor and product market pressures; but that a portion of the recent easing in inflation reflects one-time events such as the drop in energy prices. Richard Rhodes and his team take these comments to mean the FOMC is highly unlikely to lower rates in the foreseeable future ' even though the FOMC minutes from the December 12 meeting were a bit less hawkish than first perceived. Remember, it takes the FOMC quite a bit of time to 'chew the fat' regarding the current condition, and they all appear rather comfortable with interest rates exactly where they are. Holdings in the Paid-to-Play 'Long Only' Portfolio include: Gencorp (GY) is a major technology-based manufacturing company headquartered in Sacramento, California. Its businesses are concentrated in three principal industries: aerospace and defense, pharmaceutical fine chemicals, and automotive. As GenCorp moves toward its vision to be one of the most respected, diversified companies in the world, it is currently focused on two priorities: operational excellence and value-creating growth. Bowater (BOW) is engaged in the manufacture, sale and distribution of newsprint, uncoated groundwood specialties, coated groundwood paper, market pulp, lumber and timber. The company has pulp and paper mills in the United States, Canada and South Korea and North American sawmills that produce softwood and hardwood lumber. Bowater also operates facilities that convert a groundwood base sheet to coated products. Eli Lilly (LLY) discovers, develops, manufactures, and sells products in one significant business segment -pharmaceutical products. The company directs its research efforts primarily toward the search for products to diagnose, prevent and treat human diseases. The company also conducts research to find products to treat diseases in animals and to increase the efficiency of animal food production. This article highlights the commentary of Richard Rhodes for the Zacks.com audience. Richard Rhodes provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Rhodes Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Rhodes Report" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home