[Posted 7:15 AM]
Wall Street
It was kind of a funny week. Not exactly laugh-out-loud, ha-ha
funny, mind you, but the kind that makes one go, “Huh…that”s
funny.”
First, you had the issue of Xilinx, a computer solutions company,
which after the close on Monday said it was not seeing as many
order cancellations in the current quarter. The Street took this to
mean, “Houston, we have a bottom! Reopen the margin
accounts!” But then on Tuesday morning I”m watching Xilinx”s
smiling chairman and I actually listened to the words coming out
of his mouth. “I swear,” I thought. “I think it”s English and if
he”s giving an ”all clear” signal, I just don”t hear it!”
Alas, I guess I need to brush up on my language skills (and get my
hearing checked) because I felt like I was the only one who thought
the guy was distinctly saying that while the pace of order
cancellations had slowed, shipments weren”t necessarily up, nor
was he forecasting they would be in the second half either. It
just seemed like more of the same to me.
But the next day, Hewlett-Packard CEO Carly Fiorina said that
for HP, at least, “This is a global economic slowdown which may
last for quite some time,” and that the downturn was moving
from Europe into Asia and Latin America. Additionally, Fiorina
noted that for the first time they were also seeing a slowdown in
China, an event that would rock Asia if it continues.
Then on Thursday after the close, you had Intel announce that its
2nd quarter sales would be at the lower end of the previously
reduced estimate, but that demand for microprocessors was more
stable. Awesome! The Street roared its approval in after-hours
trading, sending the shares up some $2. Huh, I thought. All that
for what was really a lousy report, especially when compared
with year ago figures? And when I looked at Intel”s suddenly
frothy valuation, I figured it was time to pop a Coors Light (froth
/ foam) and ponder this conundrum.
Well, I only needed to wait until morning, when Cisco
competitor Juniper Networks issued the kind of report that last
spring or fall would have caused an outright market crash.
Juniper, whose shares traded at $245 in October, drastically
reduced its 2nd quarter revenue guidance (from an estimated $300
million to $200 million…a slight miss), slashed its earnings
estimate, announced it was laying off “8-9%” (what”s 1% among
workers?), and cited “challenging” business conditions going
forward. Juniper shares were crushed to the tune of $8 (to $38),
while Intel gave back Thursday”s $2 gain in sympathy.
Put the above 4 tales together and what do you have? Confusion.
So let”s as briefly as possible try to cut through the “fog of
slowdown.” Has the U.S. economy and the tech sector, in
particular, hit bottom? Possibly. But, more importantly, is the
second half of 2001 and all of 2002 going to see a rapid recovery
in revenue and earnings? Call me a skeptic (I”ve been called
worse), but when you have Europe just entering its own down
phase, plus no real reason for optimism in Asia or Latin America
(and possible cause for real angina in these two regions),
overcapacity, lower productivity figures in the U.S. (which
squeezes profits), let alone no pricing power, I don”t see how you
can build a real bullish scenario. Plus valuations on many tech
stocks, based on way too optimistic 2002 earnings projections,
are already out of whack all over again.
Lastly, is it possible that some technology CEOs have banded
together and agreed that with such a moribund environment for
the sector, perhaps they should start “talking their companies
up,” even it if isn”t truly warranted? Hell, it worked in 1999 and
early 2000 on the IPO and Nasdaq front with Wall Street”s
analyst community. Why not give it a whirl?
For the week, the Dow had another miniscule loss, just 13 points,
to finish at 10977, while the Nasdaq, after all the individual
gyrations described above, still managed to rise 3.1% to close
at 2215. On Friday, the New York Stock Exchange suffered a
serious failure of its trading software and the market was
essentially shut down for two hours. For some issues, like IBM
(a fairly big company), trading on the Big Board was unavailable
until the afternoon. It was a bad show by the exchange and
hopefully they”ve learned something from it. [Personally, I had
put in a ”buy” order a few minutes after the opening and then had
to wait until 11:30 before learning of my execution price. I
wasn”t scalped as feared. I imagine some others were.]
Street Bytes
–U.S. Treasury Yields
1-yr. 3.56% 2-yr. 4.15% 10-yr. 5.36% 30-yr. 5.74%
Bonds were little changed on the week. Both Fed Chairman
Alan Greenspan and European Central Bank President Wim
Duisenberg made statements to the effect that inflation was not a
problem. Duisenberg”s comment, in particular, was surprising
since it was he who just 6 weeks ago was crying about the
EU”s 2.9% inflation rate, above the ECB”s target of 2.0%. Now
the Wimster is calling for the level to fall below the magical 2-
figure by next year. Something about a slowdown.
–Big week on the economic front coming up. The release of
data on retail sales, consumer and producer prices, and industrial
production may actually provide some excitement.
–A 1998 government survey of consumer finances (the last such
one taken) reveals that real estate makes up 40% of the assets of
the typical U.S. household, with stocks and bonds comprising
15%; an important snapshot in trying to discern the impact
should property values begin to decline (as I wrongly thought
they would 18 months ago).
–Steel: The Bush administration initiated action in the trade
courts in an attempt to put a halt to the dumping of steel on the
U.S. market by the likes of Russia, China, Japan, South Korea
and Brazil. Employment in the U.S. steel industry has declined
from 800,000 in 1980 to 160,000 today, but the political impact
is still felt in West Virginia, Pennsylvania and Ohio.
Actually, imports are just 27% of the amount used in this
country, so how the affected nations treat this case will be
interesting. There is no doubt that some dumping is occurring,
but the move could backfire. Undoubtedly, our competitors
could impose higher tariffs on U.S. goods abroad, making them
less attractive to foreign buyers, and it could also increase the
cost of U.S. autos and appliances, because these manufacturers
have been relying on some of the cheaper steel in their
production process. Bush, the free trader, has taken a very
protectionist step.
–Energy: Early in the week, OPEC, as expected, opted to hold
the line on production, while agreeing to pump more to make up
the difference for Iraq”s current intransigence should Saddam
continue to play oil politics and refuse to pump for an extended
period of time. The same day of the meeting, new figures on
U.S. gasoline and crude inventories revealed a sharp rise in these
levels. So, initially, the price of all things oily or gaseous fell, as
you would expect. Energy issues declined far more dramatically,
however.
There are two different things going on here. Every one of us
should be happy if costs go down, including, yes, those holding
oil stocks. As a heavy investor in this sector since 2/99 (I took
my profits on my original holdings and have since begun
investing back into it), I have argued in this space that what we
want is for oil to fall back to the $22-$24 level (from its current
$28), otherwise we risk collapsing the world economy…and that
isn”t good for crude! At the same time, though, $22-$24 oil
would provide more than enough opportunities for ample profits.
What”s funny is how oil shares respond to what should be a good
story. They run up on every jump in crude and / or natural gas
prices, and then plummet when energy prices fall. Many are
totally missing the Big Picture. Most (but not all) oil stocks are
now back to incredibly cheap levels relative to 2002 earnings
projections. Unlike the still overly optimistic forecasts on
technology profits for next year, projections for energy issues
remain largely based on an average $20-$22 per barrel price,
because no one is convinced $20+ oil is really here to stay. Were
the global economy to truly tank, they could be right. But if you
believe we can avoid this scenario, as I do (he writes with fingers
and feet crossed), then the earnings will undoubtedly come
through as forecast…and then some. Plus you all know of the
long-term problems we face in the U.S. as far as meeting future
energy needs.
Having said all this, no doubt, some energy stocks may be
overvalued (though the list is far smaller after this week) due to
the huge run-ups many have seen over the past two years, so be
careful. But, as one who puts his money where his mouth is, I
upped my energy position to almost 30% of my overall portfolio
on Friday. [I still have my 5% Nasdaq QQQ position (the trade
that has become an investment), with the rest still in cash and
corporate bonds.]
And guess what? With all the talk of rising inventories and
falling equity values in the oil group this week, how many would
bet crude prices actually finished above last week”s levels? It”s
true…oil rallied Thursday and Friday to close up 40 cents on the
week.
Meanwhile, as we noted in this space before, isn”t it funny how
the free market works? Case in point, California. Add supply
and the price comes down. Cut demand at the same time and the
price falls even further. And so it is that Californians” electric
bills should be lower by about 38% this month. Granted, they
are far from being out of the woods, but it”s a start.
Actually, one cannot discount the positive impact of seasonable
weather on both the East and West coasts. Neither has had a real
heat wave in quite a spell. And on the gasoline front, it looks
like the networks will have to put those already prepared $3 a
gallon news stories into the archives. You just know they are
now scrambling for the wildfire reports to fill the airtime.
–Due largely to service delays, only 6% of households that are
wired to surf the Web do so with a DSL line or cable modem, far
fewer than was expected at this point in time.
–European economic growth, once projected at 3.5% for the EU
nations in 2001, is now due to come in at 2% or less. We go
with “less.”
–Lazlo Birinyi, one of the Street”s best strategists, has a take on
the equity markets similar to that of your editor. He sees a
“period of frustration” and believes that there is “too much hope
built into the market.”
–The local paper here had an article on the failed Alcatel-Lucent
merger, Lucent having its headquarters up the road from me.
The writer, who isn”t used to doing financial stories like this one,
didn”t quite capture the hurt that many in the area (as well as that
of shareholders and employees around the country) must feel. If
Lucent stock is the lion”s share of your retirement plan, I can
only hope the situation improves for you.
But the topic got me thinking of Nortel Networks, which in terms
of stock ownership and asset destruction is Canada”s equivalent
to Lucent. Just last fall, with Nortel shares trading at $89 and
representing a huge percentage of the key Toronto exchange
index (its equivalent to the S&P 500), all of Canada must have
been basking in its glory. Alas, Nortel shares traded at a new
low this week, below $13. So I asked my Canadian friend Harry
K., who works for a large financial outfit, to jot down some
thoughts.
“Back in July 1999, Nortel traded at C$18, at which point North
America was stricken by Mad Bull Disease, and the stock price
rocketed to the moon. Management thought, like the other new
grillionaires of the Internet bubble, that they were Titans,
Masters of the Universe, and gave themselves paychecks to
match their status as colossi. The media acknowledged their
godlike powers as Lords of the New Economy. Then the bubble
burst.
“In retrospect, it didn”t take a rocket scientist to figure out that if
companies like Cisco and Nortel continued to grow at 35%,
compounded annually, in five or six years they”d be worth more
than the total U.S. economy, and that this was not likely to
happen. But stock prices still reflected the golden glow of the
dawning of the New Era and those gargantuan growth rates were
going to go on forever, so the three digit P/E multiples really
didn”t matter.
“Now the stock is back trading at its levels of June / July 1999…
Is there value here? Depends. But I think it is shameful for a
company”s CEO to take home C$100 million in a year like
Nortel just had, while laying off thousands (20,000 in total) of
highly trained technical personnel. They are the seedcorn of the
company”s future growth. After all, in the information age, the
best assets are your staff”s brains! Plus there are still lurking
time bombs…like excessively lax standards for recognizing
revenue that may be worse than people have yet to realize.”
As for the shareholders who were swept up in the Great Bubble,
as in the case of Lucent, there is lots of pain to spread around.
And it doesn”t help that this week credit agency S&P gave Nortel
a negative review.
–Philip Morris was hit with a $3 billion punitive damages
judgment in California. It”s time for me to start looking to sue
someone there…as a form of revenue, of course.
–USG, the building materials giant, announced it may have to
file for Chapter 11, largely as a result of its asbestos litigation
exposure. And, it would appear that USG is a victim of the
changeover in the U.S. Senate. The company said that
legislation which would set liability caps for corporations like
USG was making its way through the Senate, but now it
appeared the Democrats would deep-six the efforts. File this
under “not good for the country.”
International Affairs
Israel: Prime Minister Sharon has proved by his actions this
week that Israeli voters knew what they were doing when they
elected him recently. After the horrific disco attack of ten days
ago, Sharon recognized that for the first time in ages he had
world opinion on his side and thus he has correctly urged
restraint, despite the calls for revenge coming from the far right,
particularly the settlers.
The fact that the Palestinians are receiving so little support from
within the Arab world these last few weeks is also quite telling.
Even at the OPEC conference in Vienna, where normally you”d
see some hardliners direct a few barbs at Israel, there were none.
Israel, and the West, have demanded that Arafat reign in the
terrorists, starting with the re-arrest of those he set free last fall,
as well as the closure of mortar and bomb-making facilities in
Gaza. As of this writing, he evidently has yet to comply. And
while Arafat made public denunciations of the Tel Aviv suicide
bombing, the militant groups such as Hamas have continued to
urge attacks on Israelis “everywhere.”
Regarding Arafat, William Safire commented this week that the
PLO leader has long called for “a certain clandestine Hostility
covered over in the name of Peace.” [He was quoting Milton.]
Those looking for Arafat to change stripes now are sadly
mistaken. Plus he lost control of the militants long ago. That”s
why any optimism that the situation has stabilized needs to be
tempered, because with the next big suicide attack, Sharon will
retaliate with force not seen since 1973.
One other note. At some point, Sharon is going to have to reach
an agreement concerning future settlements. And on this issue,
NBC News had an interesting story. Thousands of the units
remain unsold, but Israel keeps building, which only inflames
tensions.
China: The government issued an interesting report detailing the
problems it faces in the hinterlands. What”s so striking about
this forthright document is the fact that the project was overseen
by President Jiang Zemin”s top aide; a man who is angling for a
key position when Jiang steps down in 2002. The report
addresses issues like rising unemployment in the rural areas due
to the economic reform efforts. And it admits that corruption is
the #1 concern of the people in these regions.
But at the same time this was being released, the government
was firing editors who have written similar story lines in their
own publications. It”s all part of the growing chaos as the
Communist Party attempts to maintain control, while the people
desire more democracy. Stuck in the middle is the economy. [I
have more on this topic in my current “Hott Spotts” piece.]
Meanwhile, on the trade front, China has imposed curbs on
Japanese autos in retaliation for Japan”s limits on Chinese leeks.
Advantage China. And on the Hong Kong front, you”ll recall
that when I was there a few weeks ago, I reported on a trade
mission of Hong Kong”s business elite to China”s western
provinces. The group returned a few days ago and evidently was
underwhelmed by the business prospects in the hinterlands.
Couple this with the above report and you can see how
increasingly desperate Beijing will be to find employment for its
rural citizens. And if the jobs don”t come through, then the
people will continue to flee to the cities in ever increasing
numbers, making the urban areas even more combustible.
Iran: Elections were held on Friday and it would appear that
President Khatami has won re-election. Khatami reiterated this
week that he wants to improve relations with the U.S., but that
the U.S. must take the first step. [We should take limited ones,
in the eyes of this editor.]
But Khatami faces huge issues on the home front. The clerics
still control the judiciary and security services, so while Khatami
can talk of reform and increased democracy, the reality is still far
different. And with 16% unemployment, with those who do
work holding down 2 or 3 jobs just to keep up, the people are
becoming very impatient with the pace of change.
Europe: In keeping with previous comments on the future of
Europe, this week a former aide to Cyrus Vance and Henry
Kissinger, Harry Blaney, wrote an op-ed piece in the Washington
Post. Blaney has been teaching and doing research in Europe the
past few years.
“Political parties (in Europe) and in some cases governments are
moving ominously to particularism (sic), xenophobia, intolerance
and racism. This trend, like the anti-globalization movement and
its protests, is a sign of deep political alienation and popular
discontent – only it is much more dangerous. It has the potential
to undermine democracy and economic fairness. It could dash
prospects for a truly-unified Europe.”
Blaney is actually most concerned about the “far right” coalition
led by Italy”s new Prime Minister Silvio Berlusconi. But here at
StocksandNews, we like Berlusconi because he seems to be the
only European leader who is fully supportive of the U.S.,
including the issue of missile defense.
Russia: Turkey and Russia have inked a deal on a new natural
gas pipeline between the two, which increases Turkey”s
dependence on Russian gas to 80% (overall, Turkey imports 98%
of its energy needs). This is worrisome to the West as it sets up
Turkey for energy blackmail. And, pursuant to our discussion of
last week on Russia”s gas giant Gazprom, you can see how
Russia can increasingly use energy as a weapon as opposed to
the military angle, while achieving the same foreign policy
objectives.
Britain: Prime Minister Tony Blair and his Labour Party swept to
victory in Thursday”s general election. There is no doubt that
Blair will now push through a referendum on the issue of
Britain”s adoption of the euro. So it was little surprise when the
British pound hit a 15-year low. Separately, there was also more
racial violence this week, this time in Leeds.
France: Oui, oui! Socialist Prime Minister Lionel “Big Train”
Jospin (actually, ”Big Train” isn”t his nickname…but it sounds
good) had to admit that in the 1960s he was the member of a
secretive Trotskyist movement. Jospin has always denied this
but the admission lends credence to claims that he initially joined
the Socialist Party as part of a Trotskyist plot to infiltrate
political institutions. Jospin still wants to run for president, when
elections are held for that office in 2002.
North Korea: In a victory for Secretary of State Powell, President
Bush has authorized the resumption of talks with the goons. The
North will now try to extract all manner of concessions,
including free grain for the army for 150 years.
Japan: We are so desensitized to mass killings in America that
it”s hard for us to understand the depth of pain the nation of
Japan must feel as a result of the murder of 8 at the Osaka
elementary school. And for a country that has struggled with its
economy for 11 years now, an event like this doesn”t help.
Japan”s reservoir of self-doubt has just been replenished.
Balkans: Macedonia is looking to formally declare war on the
ethnic-Albanian insurgents. 5 Macedonian soldiers were killed
in an ambush this week.
Nepal: A nightmare for your editor is to learn of some news
event 5 minutes before posting this weekly missive. Such was
the case early last Saturday morning when I heard of the situation
with the royal family here. At first I thought this didn”t warrant
any space, then I decided, this is absurd, but it”s news, and so I
treated it with perhaps a bit of insensitivity.
But you know what? Upon further reflection, this is a dumb
story, and the lunacy continued with the government”s first
explanation that an automatic weapon “accidentally” went off.
However, there is an interesting angle, which is receiving
virtually no play. A glance at the old atlas reveals that Nepal is
smack between India and China, and these two hate each other.
For its part, Nepal is an impoverished nation that is also
attempting to deal with a Maoist guerilla movement. In other
words, Nepal is ripe for the taking. And you get to collect fees
from Mount Everest expeditions.
Brazil: The largest economy in Latin America now faces
mandatory electricity rationing. Folks in Rio, who previously
said they didn”t venture out at night because of the crime
problem, must be cowering in their homes.
Peru: But here they had reason to celebrate as AmerIndian
Alejandro Toledo won the presidential election, with the vote
being a surprisingly peaceful one.
Argentina: Former President, and playboy, Carlos Menem, has
been placed under house arrest for his involvement in a large
arms scandal that originated during his administration. Menem
just married a Chilean beauty queen half his age last week, so we
give him credit for that. We also wonder if she”s available again.
Politics…it”s “light” this week.
–A Washington Post / ABC News poll revealed that a majority
of Americans want President Bush to compromise on issues like
energy, the environment and Social Security. Overall, his
popularity is slipping.
The president also faces large protests in Europe this week over
his policies on the Kyoto Accords, national missile defense, and
even the death penalty. Regarding the latter, the interesting thing
is that more and more states are turning away from capital
punishment, while in many European countries, 50% are now for
it. As for Kyoto, Bush had commissioned a National Academy
of Science study and the conclusion reached was that global
warming was for real. Thus Bush better be prepared to start
dealing on this one.
–Fellow Republicans repeat after me. With the new
Democratic-controlled Senate we get no missile defense, no
drilling in the Arctic National Wildlife Refuge, and no new
nuclear power plants. Basically, it kind of sucks.
–Tom Daschle: “Bipartisanship is not an option, it”s a
requirement.” I”ll set the “over / under” at 20 days on this
statement. The betting windows are now open.
–Boy, did you see New Jersey”s Robert Torricelli at the tax bill
signing on Thursday? No one wanted to be within 50 feet of
him.
–The Los Angeles mayoralty race proved to be rather
interesting. James Hahn, white, beat the Hispanic candidate,
Antonio Villaraigosa, by a 54-46 margin. Villaraigosa won the
Latino vote, 4-1, while Hahn took the African-American one by
a 3-1 margin. Hahn then captured a lion”s share of the white
electorate. Both were Democrats.
–As I stated in this space in 2000, I liked John McCain and
would have voted for him if given the choice. But now he really
has become a pain in the butt and I”m struggling to finish his
book.
AIDS
This week marked the 20th anniversary of the discovery of the
AIDS virus. And with no real cure in sight, the man who first
identified the disease, Michael Gottlieb, said this week that by
2020 AIDS will have caused more deaths than any disease in
human history. He also thinks it may not be until 2021 that one
or more vaccines is available for those areas most impacted.
And a review of some of the #”s paints an incredibly bleak
picture. In the U.S., among adults 15-49, 0.6% are infected. But
in South Africa the figure is 20% and in Botswana it”s a mind-
boggling 36%.
Then there is India. AIDS was slow to make its way here, but
the adult infection rate is 0.7%. That may seem reasonably
manageable but consider this. Because of India”s population,
one billion and counting, the 0.7% translates to 3.7 million
(again, adults). The potential then for the disease to spread
exponentially in this mostly impoverished nation is staggering.
And it”s a similar story in China.
Back in the U.S., researchers have uncovered some disturbing
trends. Among young people, AIDS is once again on the rise,
particularly in the African-American community. Why? Today”s
youth aren”t as scared as they were 15 years ago as they see
stories of drug cocktails prolonging the lives of AIDS victims, so
they figure their dangerous behavior is worth the risk.
But there is something else at work here, the overall culture in
America, one that has become increasingly promiscuous and
mean-spirited. This week in the New York area alone we had the
following stories make the local news.
–The first suburban “Gay Prom,” to be held on Long Island with
at least 180 students from 40 area high schools participating.
Media outlets from MTV to the BBC are going to cover it. Most
of the guys have said they are wearing dresses.
–In New York City public schools, sex attacks are up 13% just
this year.
–The Board of Education in White Plains, NY is attempting to
institute a stricter dress code for the high school because of the
promiscuous look that has taken hold among the female students.
–In Chappaqua, NY (home of that paragon of virtue, Bill
Clinton), two male high school students were punished for
running a Web site that went into great detail on the sexual lives
of their fellow students. [This same high school, two days later,
announced that a copy of the SAT exam had been passed around
before the last test.]
–A town next to where I live had to shut down a middle school
Web site because two girls were ripping apart classmates.
–And nationally, you may have heard of the study which reveals
that 83% of middle and high school girls allege they have been
sexually harassed the past few years (and about 80% of the
male students as well).
All week, as the media noted the AIDS anniversary and the scary
new trends, I waited for someone to state the obvious; If you
don”t believe our popular culture has something to do with these
developments, you”re nuts. Television is garbage, as is the
rap music scene (which has the recurrent theme of abusing
women and all authority). Add the fact that our money culture of
excess (as exemplified by that inane Polo.com commercial) leads
to a general lack of respect among the “haves” for the “have-nots,”
plus the awful influence of the Internet, and you can see there
is no shortage of blame to go around.
Random Musings
–If you saw the latest crash-test videos of Ford”s F-150 and
the Dodge Ram trucks, I”d think twice about buying one. They
crumple up faster than Barry Bonds in post-season play.
–Another sign that the apocalypse is near. The following radio
commercial is airing on mainstream New York radio stations.
“When was the last time you had sex with your partner in a place
where you shouldn”t have?”
–Steve B. forwarded an interesting piece concerning an
economic conference that was held in Moscow recently. Some
of the speakers were mainstream, others weren”t. Regarding the
latter, there were a few crazy ideas being floated, including from
a Russian economist who spoke of the U.S. splitting up into 10
or 15 new states as a result of class warfare.
–Long-time friend Jeff B. has recently purchased a little spread
in New Hampshire and there is a cattle ranch nearby. Only Jeff”s
daughter Katie, far more perceptive than her father, realized the
other day that the inhabitants of the ranch weren”t exactly cattle.
“These aren”t steers, Dad,” she said. Guess what? They”re yaks!
Hurry up and move in Jeff. Just when I thought I had retired the
noble creature from this site, it now is apparent that I will need
to fund our very own national yak correspondent. [Sorry, JB,
payment around here is in Coors Light.]
–Speaking of beer, my tax rebate comment of last week
generated more reader notes than any other…meaning I may
have to rethink the profile of the typical S&N fan. But,
unfortunately, there seems to be no real consensus on what I
should do. Some of you say I must buy cases of a premium lager
with my $300 check, others say stick with Coors. But “Squires”
(whose claim to fame is that he once parked George W.”s car)
properly corrected me for not even considering Duff Beer
(Homer”s brew of choice). And he also reminded me that I
could always turn to Duffenbrau for those special occasions.
Thanks to all for the input.
–A survey revealed that the average American male believes his
physical attractiveness peaks at 38. Being 5 years on the
downside of that figure, myself, I find this quite depressing and
another reminder that I should…………………sorry, just went
for a jog.
–Kobe Bryant, in one of his many commercials: “I think
creativity comes from within.” Very profound…very, very
profound.
Gold closed at $274…late Friday rally.
Oil, $28.33.
Returns for the week, 6/4-6/8
Dow Jones -0.1% [10977]
S&P 500 +0.3%
S&P MidCap +0.9%
Russell 2000 +2.0%
Nasdaq +3.1% [2215]
Returns for the period, 1/1/01-6/8/01
Dow Jones +1.8%
S&P 500 -4.2%
S&P MidCap +2.9%
Russell 2000 +5.8%
Nasdaq -10.3%…still 56% off of its high
Bulls 48.5%
Bears 30.5%
Have a great week, folks. I appreciate your support.
Brian Trumbore
