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**To gain access to the member portion of the website, simply click on the "Subscribe Now" tab, establish a username and password, and you'll have full access to the Dynamic Growth newsletter and portfolio. This free trial will end on June 1, 2007. This morning, Circuit City (CC) the nation’s second largest retailer of consumer-electronics said that it lost $16 million in the third quarter ending Nov. 30. This loss comes on the heals of our warning that "the deflating of the real estate bubble is causing some problems for consumers who have been using home equity extractions to fuel their spending habits." Since consumers latest fascination is for electronics, the Circuit City news is a tell tail sign of events to come for the retail sector. Shares of Best Buy (BBY) fell 3.3% in sympathy on news of Circuit City's 3rd quarter loss. But last week Best Buy said that “profits for its third quarter, which ended Nov. 25, rose less than estimates because it was forced to cut prices to keep pace with Wal-Mart and Circuit City.” Bloomberg reported this morning that the International Council of Shopping Centers and UBS said that “Sales at stores open at least a year rose 2.4 percent in the week ended Dec. 16 from a year earlier." Clearly, consumers have delayed their Christmas purchases in hopes to see massive price discounting in the days leading up to Christmas. I was at our local mall, and stores like Joseph A. Bank (JOSB) and Aeropostale (ARO) have announced 50% off sales.

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