DAVE HARRIS: Welcome to Dave On Stocks Podcast #62. It's Wednesday June 13^th 2007. I'm Dave Harris. I'm a long term investor with a perspective on the market and individual stock advice.

We close out the trading day with a very welcoming rally on Wall Street. The yield on the 10 year note fell to 5.21% from 5.29% yesterday. The rising yields have contributed to weakness in stocks the past few days. In economic news there was a surprise to the upside on consumer spending. Retail sales went up 1.4% in May and that was better than expectations. Obviously the consumer is strong, so I have a great stock suggestion. You should buy the real estate investment trust Simon Property Group (SPG). This is a leading shopping mall REIT-the largest in market cap with coverage all around the globe. Yesterday an analyst from Nicolaus & Co. foolishly downgraded the stock, along with a slew of other REITs, from a buy to a hold. In April, SPG was in the $115 range and that's where it belongs. I think it's too cheap right now. It closed up 3.05 to $99.86. I think the market realized how strong consumer spending is despite high gas prices, and how a shopping mall REIT like SPG is a buy. I noticed a lot of insider buying in May when it was a touch over $100 per share. The company knows when it's stock is under $110, then it's too cheap to avoid. Simon Property Group is my favorite in the group. Similar companies made gains today including General Growth Properties (GGP) up by 1.41 to 56.31. The retail REIT index rose almost 2 and a half percent today. You won't regret buying Simon Property Group (SPG).

Video renter Netflix ((NFLX) is feeling some pain as their biggest competitor Blockbuster (BBI) intends to lower the price of rentals online. Blockbuster's "3 movie at a time" plan will be $16.99. That's a buck cheaper than Netflix. Blockbuster gained .32 to finish at 4.27 and Netflix lost .66 to 19.42.

The biggest economic news for this week comes out the next few days. Tomorrow its wholesale prices in focus with the release of the PPI. Consumer inflation data is out Friday.

The DOW gained 187.34 to close at 13,482.35. The NASDAQ rose by 32.54 points to 2,582.31. The S&P 500 closed up 22.67 to 1,515.67.

I'm expecting to see stocks continue making gains even as the bond yields reach above 5%. In the mid-late 1990's for example, the DOW rallied in that period even as the 10 year bond was well over 5%. In the second and third quarter of 2006, the DOW was crossing over 11,000 with 10 year notes yielding above 5% again.

That's all for today's Dave On Stocks podcast. I'll be back soon. I'm Dave Harris. Remember to write me with any questions or comments at the "contact us" link on this page. My website is www.daveonstocks.com. This is Dave On Stocks.