[Posted 7:15 AM]
As J.P. Morgan”s Doug Cliggott observed middle of the week, it
seems as if the attitude among investors these days is, hey, I”m
receiving just 2% in my money market fund, leaving stocks as
“the only game in town, so let”s buy them.” Folks, the action in
the market is beginning to remind many of us of the fall of ”99.
Which means one thing; count me out.
I sold my substantial exposure to technology at the end of 1998
and sat out the final phase of the tech bubble. That proved to be
a smart move then and, over time, I”m suspecting this go around
is no different.
But, to be fair, there is some pretty good news out there.
–Inventories are being worked down and manufacturing would
appear to have bottomed, as the latest data on new orders
revealed.
–The semiconductor sector shows signs of bottoming as well,
with companies like Intel and Advanced Micro telling us the
worst is over and that consumer PC demand appears to be strong
this holiday season. [I”m more than a little skeptical of this.]
–The readings on the service sector showed some improvement.
–Low energy prices have the impact of a huge tax cut.
–The official reading on consumer spending rebounded strongly
in October (the latest report), and it would appear November
levels may be better than expected too.
–Autos continue to shine.
–The airline industry is improving.
–Consumer sentiment, as measured by the University of
Michigan data, is rebounding.
–Seasonally, no one can deny (I never have) that this is normally
a strong time of year for equities.
So why, then, am I still negative?
–Interest rates are suddenly skyrocketing, ending the refinancing
boom and once again offering solid competition for stocks, if you
step out a bit on the yield curve.
–Despite some contradictory data, overall holiday shopping, at
least on the retail front, looks weak.
–State budgets (a subject which gets little attention) are spilling
red ink. That means less spending and more layoffs.
–Benefit and insurance costs are soaring (more later).
–Personal income is flat.
–Debt is at record levels (see the positive consumer spending #”s
and couple it with flat income).
–Home mortgage delinquencies and foreclosures continue to
rise.
–The unemployment rate now stands at 5.7%, still historically
low, but it”s the trend that remains worrisome and it”s capable of
finally killing the consumer.
The issue thus becomes, while in some respects we may have hit
bottom, just what kind of recovery can we have with the
significant negative factors I have cited? Where is the pricing
power? How soon will Corporate America commit to renewed
capital spending? How are you going to generate profits at a
level which would warrant some of the outrageous valuations we
once again see in the market, a la ”99-”00? And at what point
will the numbers be worn off consumers” credit cards, leaving
the merchants to say, “I”m sorry…we can”t take that charge.”
“But…but…”
Yeah, I guess I won”t make the market”s party and I recognize I
may be missing a real good time. Just a few words of advice:
don”t stay too late and watch the drunk drivers on the way home.
Oh, and one other thing, we are in the midst of a war of
unknowable proportions. It”s going well, thank God, but keep
lots of cash on hand in case America becomes the target of a
”dirty bomb” or two.
Street Bytes
–Thanks to the positive economic news (which outweighed even
another disastrous employment report), plus hopeful notes from
the likes of Intel and Cisco, Dow 10000 and Nasdaq 2000 were
breached. Both fell a bit at week”s end but nonetheless still held
the levels that little boys and girls once only dreamed of. [Sorry,
I”m practicing for my book, “From Dow 10000 to Dow Zero.”]
On the week, the Dow picked up 2%, about 200 points, to close at
10049. Nasdaq had the far more powerful percentage gain,
surging nearly 5% to finish at 2021. Both now stand at levels not
seen since August.
–U.S. Treasury Yields
6-mo. 1.80% 2-yr. 3.18% 10-yr. 5.15% 30-yr. 5.60%
[The 10-year had traded down to 4.66% on Tuesday. Then
whoosh!]
Oh, it was ugly in the bond pits this week. After a one-week
break, yields soared anew as traders sold on the expectation that
the recovery in the economy is well under way. Whether it was
strength in manufacturing, the service sector, or an increase in
consumer confidence, everything for this week, at least, appeared
to line up against the bond mavens. But it”s also as simple as the
fact that the perception exists that the game is over; the great
bond bull market of the past 19 years. Which also meant that
some said, “Hey Bob, let”s head back over to Nasdaq. I”m
buying!”
As for the Federal Reserve, it is still expected that it will lower
the target rate on federal funds 25 basis points when they meet
on Tuesday, primarily due to the awful employment report. The
longer end of the yield curve, however, is looking well beyond
the short term.
–Doug Cliggott is still forecasting earnings of just around $38 on
the S&P 500 for 2002, while the Street”s consensus is over $50, a
huge difference.
–Gene Epstein of Barron”s pointed out an interesting fact. A
recession is normally preceded by a drop in home sales of 10-
20%, at least that”s been the case each of the last five. This time,
however, the figure is off only 3% from the peak.
–Nancy Lazar of the esteemed ISI Group has some positive
views on the economy. She forecasts first quarter GDP growth
of 2.5%, accelerating to a 3.5-4.0% rate thereafter. But she also
admits the risk is that “we are front-loading (the economy) and
stealing activity from the future.” [See autos…Source: Barron”s]
–Tech heavyweights Intel, Cisco, and Oracle received a boost
from company comments this week. Intel raised its 4th quarter
revenue estimate from a range of $6.2-$6.8 billion, to $6.7-$6.9
billion (whoop de damn do), because of the aforementioned
pickup in consumer demand for PCs, while Cisco”s John
Chambers told analysts that November orders met expectations.
But he said zero about the future. And then there is chief BS
artist Larry Ellison of Oracle. Hell, I don”t know if he”s going to
be right this time, but he basically told investors that it was clear
sailing in ”02, and then he hopped on his boat and bid us adieu.
–Why are stocks going up? Money managers are afraid to get
left behind, while everyone is so desperate to believe in the rally.
There is one truth, however, that being IF the U.S. embarks on a
sustained period of growth (longer than two quarters), the rest of
the world will follow (with notable exceptions like Argentina).
Now ask me again if I believe this will be the case?
–Energy: Lots of stuff this week…grab a beer. Oil rose
through mid-week on talk of an agreement between non-OPEC
Russia and OPEC to reduce production. OPEC had stated in past
weeks that if non-OPEC reduced a total of 500,000 barrels per
day, they would in turn cut production 1,500,000 come January
1st. But by the end of the week, OPEC was waffling, non-OPEC
Norway was renewing talk of a price war, and anyone with half
an interest in the subject already knew Russia wouldn”t abide by
a cut even if it said it would. Add it all together and oil, as
measured by light sweet crude, slipped back to $19 (19.04).
But production levels, while obviously important, are not the
issue for today. Rather the demand side of the equation and,
frankly, the weather, are paramount. Global demand continues
to slip as the worldwide recession spreads and this unbelievably
balmy fall certainly doesn”t help. Regarding the latter, I keep
looking at the 10-day forecasts for around the country and
still don”t see a marked change in the patterns just yet. Plus
inventories are bulging so it will take one helluva cold snap to
begin to make a dent in this regard.
Bottom line, oil (and natural gas) isn”t going anywhere until, a)
the weather changes and, b) demand picks up as a result of a
global recovery. I”m counting on both (though just minimally on
the economic front…but at least enough to change sentiment).
As for energy share prices, frankly, I have been shocked they”ve
held up as well as they have. The volatile service / drilling sector
that I follow closely has seen rebounds in prices on the order of
40-60% from the lows set between 9/21-9/28. Yet back then oil
was $23.50-$26.00. At that time I thought from a pure valuation
point they were undervalued (and wrote as much in this space).
Now I think they may have gotten ahead of themselves until we
see the change in demand and a sharp reduction in inventories.
Personally, I”m doing well with my 3 picks, but I expect a
bit of rough sledding ahead as we near earnings season and
possible negative pre-announcements.
However, if you owned oil services giant Halliburton, all I can
say is ouch! On Friday the stock was decimated by word of an
asbestos judgment against its Dresser Industries unit. What
follows is self-serving, but if you can”t be self-serving on your
own web site, when can you be?
On 8/18 in this space I touched on Halliburton and its potential
asbestos exposure. I then stated, “Some analysts are trying to
convince us that the ultimate liability is not too significant. I
would just say, be careful.” No one should be surprised, then,
but the reaction was as severe as it was Friday because everyone
had their head in the sand and came up, choking, all at once.
And further on Halliburton (whose shares I have never owned), I
wouldn”t be a balanced scribe if I didn”t point out that we now
have a situation where President Bush”s good friend, Kenneth
Lay, is in hot water over his stewardship of Enron, while Vice
President Cheney was formerly CEO of Halliburton. Just
looking at the politics of it, Democrats could have a field day.
Sure, the war effort is all that really matters, but when it comes to
the mid-term congressional elections, Republicans should be
more than a bit nervous.
I also have to comment on the whole issue of asbestos, a topic I
have covered fully over the years. Congress would be doing the
nation a huge service if it shelved the stimulus package, with the
exception of an across-the-board tax cut, and instead passed
legislation capping the outrageous asbestos judgments, which of
course do nothing but line the pockets of the trial lawyers. It is a
national disgrace that this issue can still have such an economic
impact. [And remember, there is a rather large corporation that
has a bigger potential exposure than anyone else in the world…
General Electric.]
Lastly, Secretary of Defense Rumsfeld was, for once, unprepared
when Tim Russert asked him on “Meet the Press” why the U.S.
imported 1 million barrels of oil a day from Iraq. He fumbled it,
but I guarantee you he will have a better answer next time. Raise
fuel efficiency standards on autos and give incentives to the
domestic oil industry, for starters, while throwing in projects like
ANWR for the longer term.
–Japan: The economy is now officially in recession for the third
time in 10 years, as GDP in the third quarter fell 0.5%. Exports
continue to plunge (China has as much to do with this as the
overall global economy) and deflation is severely impacting
personal income and spending. It also doesn”t help that public
debt is now projected to rise to 150% of GDP by year-end 2002.
–Argentina: The IMF denied the country”s request for further aid
(though Argentinian officials are in Washington this weekend
begging the IMF to reconsider), and the government has been
forced into taking desperate measures. Cash withdrawals have
been limited to $1,000 per month and corporate pension funds
are being coerced into buying government debt. Default is
potentially days away and for many to continue to say it doesn”t
matter is ludicrous. Also, with unemployment at 16% and rising,
civil unrest isn”t out of the question. And at what level does the
crisis spread to Brazil?
[Brazil”s tourism industry just suffered a big blow, with the
murder of Peter Blake at the hands of Amazon River pirates.
Blake piloted New Zealand to victory in the 2000 America”s
Cup.]
–The House voted 215-214 to grant ”fast-track” trade authority to
the President, a major victory for the administration. The Senate
will now approve it. This means that when a trade deal is
negotiated, Congress can only vote ”yeah” or ”nay” and can”t
attach unwieldy amendments.
–Gap same store sales were down 25% in November. Talk
about a franchise that is imploding. I normally get my niece a
gift certificate from here, but I”m going elsewhere this
Christmas. Because it is so over!
–The government mandated that G.E. clean up PCBs it dumped
decades ago in the Hudson River. The estimated cost to the
company is $500 million. Of course this also means that in
stirring up the river bottom, workers may accidentally wake the
famed Hudson River Monster, that 100-foot serpent that
terrorized barge operators in the 1800s.
–Ford warned of far worse than expected results for the 4th
quarter and blamed in part soaring benefits expenses, like for
healthcare. It also suspended the company 401(k) match. Merry
Christmas.
–Due to mismanagement of Unilever”s pension assets, Merrill
Lynch has to cough up $105 million in damages. They missed
the benchmark by 11%. Of course the door is now open to all
manner of performance-related lawsuits. Meanwhile, Merrill
replaced stock strategist Christine Callies with Richard
Bernstein, a favorite here at StocksandNews. Bernstein currently
forecasts a flat market for 2002.
–USX, Bethlehem Steel and others are asking permission from
the federal government to be allowed to merge, arguing that the
very survival of the domestic steel industry is at stake. The
companies want to foist the responsibility for retirement benefits,
such as for healthcare, onto the American taxpayer. Retirees
outnumber active employees by 4 to 1 and the estimated liability
is $13 billion.
–The SEC is once again warning about the abuse of “pro-forma”
accounting and is threatening to impose civil-fraud penalties.
Don”t threaten…impose them already. Assemble the tribunal.
–With the late development that the David & Lucile Packard
Foundation has stated its intention to vote ”no” on the merger
between Hewlett-Packard and Compaq, instant analysis tells you
the deal is off. Carly Fiorina is toast.
–The Wall Street Journal reported that Enron lost $billions in
Brazil. What have I been saying about investments in emerging
markets? As for the thousands of employees that the company
laid off, they are receiving a flat severance of $4,500 each. After
tax, it”s even more pitiful. [A select few are being handed an
average of $100,000 to stay on.] And then there is Enron stock,
which rose to $1.26 on Wednesday, up from a low of 25 cents
the prior week, before closing Friday at around 75 cents. It”s
amazing to me that investors think there will be anything left
over for common shareholders after bankruptcy court apportions
any assets to the debt holders.
–Let me be the first to tell you that one cannot underestimate the
potential economic impact of the drought we are experiencing in
the New York area. [And I realize it is a similar situation along
much of the East Coast.] Unless we receive massive amounts of
rain and snow over the next few months, I guarantee you that by
May, you will see headlines concerning plant closings and
reduced shifts. So, unless you want to read this once a month
until then, pray for rain so I”ll shut up about it.
–Merrill Lynch and CSFB became the latest in the financial
industry to freeze salaries. Just more folks who won”t be
increasing personal spending next year.
–And Lockheed Martin became the latest to abandon its plans in
the telecommunications-services business and will take a $1.7
billion charge for a job poorly done.
International Affairs / The Coalition
We are being saturated with so much reporting from Afghanistan
that there is little I can add, other than to say that much of this
reportage is inaccurate. The good news is that our war strategy
was obviously brilliant. And thankfully there is little bad news.
Israel: “You in America are in a war against terror. We in Israel
are in a war against terror. It”s the same war.” –Prime Minister
Ariel Sharon to columnist William Safire. My comments on
Israel last week were posted about 12 hours prior to the horrific
attacks and so I watched with interest Sharon”s brief meeting
with President Bush on Sunday. Bush”s statement of support
could not have been more clear, and in ensuing days the
newfound level of cooperation and respect between the two has
been startling.
In his first remarks to his countrymen back in Israel, Sharon was
effusive in his praise of Bush and the president”s “courageous
leadership,” while the prime minister also remarked that his own
people could learn a thing or two about unity in the U.S. during
this war on terrorism.
And now you see how the Bush administration was right to
isolate Arafat, best exemplified in the refusal of Bush to meet
with him thus far. Secretary Rumsfeld put it best, “Arafat has
not delivered anything to the Palestinian people.” And Bush
made it clear this week that Hamas and groups of its ilk should
be treated no differently than al Qaeda.
Meanwhile, the potential for civil war among the Palestinian
people grows. The Palestinian Authority attempted to place
Sheikh Yassin of Hamas under house arrest and this precipitated
large-scale unrest. The two sides may have reached a temporary
truce, but it”s only a matter of time before Arafat is history.
What follows probably won”t be any better. But at least the U.S.
has finally made it clear whose side it”s on, the right one.
Russia: 7 were arrested trying to sell weapons-grade uranium, the
first such “admitted” case. And what”s this? Russian ultra-
nationalist Vladimir Zhirinovsky called for broad cooperation
between Russia and the U.S.! In the words of Dick Enberg, “Oh
my!”
Turkey: Three significant developments. First, Secretary of State
Colin Powell paid a visit to Ankara to feel out the government on
the looming battle against Iraq. Officially, for reasons
enumerated here before, the government is opposed.
Unofficially, the military (who really controls things in this
country…which is still good) would offer its support. I”m still
convinced we will obtain the public support at the appropriate
time, once we assure Turkey that we won”t abandon it
afterwards.
Second, the Greek Cypriot leader crossed into Turkish-controlled
Cyprus for the first time in decades as a dialogue between the
two enemies has been launched. This is potentially huge,
particularly as it pertains to Turkey”s E.U. bid. And third, on
Thursday night, Turks watched on live television as a journalist
set-up two government officials who proceeded to take cash
bribes. Once accepted, police swooped in. As a semi-expert on
this nation, I can”t begin to tell you how significant this is.
Massive corruption has held this country back since the time of
Ataturk”s departure, and for the people to see such a public
crackdown is more than a bit encouraging.
[Earlier in the week I purchased shares in a Turkish company
which lists on the NYSE. It is not the investment idea I
previously discussed in this space. About 3% of my overall
portfolio assets are now invested here and I may hike it to 5%
down the road…but no more than that. Now if I was a real
gambler…]
Taiwan: President Chen Shui-bian, despite the fact his country is
mired in the deepest recession in its history (though the stock
market soared this week on hopes of better times ahead), is now
the head of the largest political party with the electoral defeat of
the Nationalists, who had ruled for some 50 years. Rejuvenated,
Chen is seeking a meeting with Beijing, but only if the
communists will recognize Taiwan as a separate entity, not this
one-China garbage.
William Kristol wrote this week that there is no longer any
reason for the U.S. to “continue treating Taiwan, a free and
democratic republic of 23 million people, as some sort of pariah
state. Taiwan”s officials are not allowed to visit or meet with
senior U.S. government officials. The secretary of state recently
met with the foreign minister of Iran, one of the world”s leading
state sponsors of terrorism – but he cannot shake hands with the
foreign minister of Taiwan. This situation, a relic of the Cold
War and of the claims of the previous authoritarian government
in Taiwan to the right to rule China, inconveniences Taiwan. It
dishonors the U.S.”
Germany: Last Saturday, Berlin was witness to the largest neo-
Nazi march since the days of Hitler…4,000 skinhead dirtballs
who should be rushed before a tribunal.
Italy: This nation is doing a terrific job in the fight against
terrorism, shutting down businesses linked to al Qaeda and
arresting extremists. Yes, Italy is rocketing up the list of your
editor”s favorite allies. [#1 Britain #2 Australia #3 ?]
Venezuela: Many merchants are staging a shutdown on Monday
to protest leftist President Chavez”s policies. Chavez, you”ll
recall, loves Castro and is taking his country down a path of ruin.
Random Musings
–To Attorney General John Ashcroft, you have my total support.
To Senator Leahy, you look like an ass on the issue of the
tribunals. I can”t care about the “civil liberties” of a few when
we”re talking about our very survival. And as for John Walker,
I”ve been surprised how many notes I”ve received on this one.
All of you want him, err, finished off. It”s obvious he was
fighting against the U.S. and, yes, should be executed. But I can
just see the media if he is brought back to the U.S., which would
seem likely. “He”s only 20…the poor baby…he didn”t know
what he was doing…” I hope I”m wrong but I”ll just guess he
spends the rest of his days in Leavenworth, instead of being put
before a firing squad.
–Reverend Franklin Graham: “In most countries where Islamic
law dominates there is practically no freedom of religion (not to
mention freedom of speech or the press). In most Islamic
countries, including so-called moderate Islamic states such as
Saudi Arabia, it is a crime to build a Christian church, Jewish
synagogue, Hindu temple or any other non-Muslim house of
worship. In contrast, there are about 3,000 mosques in the U.S.,
with new ones being built every week.
“Muslims are free to worship Allah in the U.S., but Christians
are not free to worship Jesus in most Muslim countries. There
has not been a single church in Afghanistan since the exiled king,
Mohammed Zahir Shah, destroyed the first and only one in the
history of the country in 1973.” [Wall Street Journal]
–From reporter Douglas Jehl of the New York Times. “In fact,
Islam teaches that violence is not only justified, but obligatory, in
the defense of the faith.” Jehl uttered this truth in a piece on how
moderate clerics are still afraid to speak out. [Actually, I was
shocked Jehl”s editors allowed him to write this. They must be
short of staff.]
–If you wonder why some of us in the New York area still sleep
with one eye open, look no further than the raid this week on the
“charity” in Paterson, N.J., which evidently funneled money to
Hamas and other extremist groups. Paterson and some of the
surrounding communities are swarming with evildoers, men
who have had years to plan attacks in my backyard, at the Short
Hills Mall, Newark Airport, and our pharmaceutical plants, let
alone New York City. South Dakota looks better and better all
the time. Yup, tooling around the ranch in my golf cart.
–Not for nothing, but I wrote the following in this space back on
1/13/01. “The Taliban in Afghanistan has instituted the death
penalty for those converting from Islam to a different religion.
We can”t wipe this place off the map fast enough.” Thanks to
the conviction of one George W. Bush, we are.
–The latest national missile defense test was a success. Go
Nerds! And keep testing.
–Another potential ebola outbreak in the Congo has killed at
least 17.
–A few weeks ago it was Barron”s, this time Newsweek ran the
story, “The Next New Thing: Living in a Wireless World.” Here
are some thoughts and excerpts from the report.
–You”ll be able to “turn the heat on when you”re on vacation in
France.” [Why would you do that?]
–And on your screen you”ll “switch between video, the Internet
and family photos.” [Oh joy!]
–“The fridge will tell you when you”re low on milk.” [What
about beer?]
–“Interestingly, consumers in countries like Japan and Finland
have already begun to establish their own style in relating to it
(the wireless world)…While it is often observed that the
Japanese have rapidly taken to using mobile phones to connect to
the Internet, perhaps more significant is that young people in
Japan see their phone devices not as tools but companions.”
[Just another reason why Japan is in recession again.]
–“Though the auto industry initially overestimated how quickly
the public would adopt ”telematics” (the term for connecting
autos to mobile phones, satellite navigation and the Internet), it
still expects drivers to ask dashboard-mounted units to read back
e-mail, make stock trades and link to the myriad Web services
provided by Microsoft or AOL that will remind you to meet your
nephew or warn you that your flight is canceled…Meanwhile,
marketers salivate at the idea of the Internet version of the
billboard – a message piped into your car to let you know you”re
near their business. ”Free fries if you stop at the next Mickey
D”s!””
If it all creates jobs, good, but the Next Big Thing? Ridiculous.
Most of this technology is geared for morons.
–But, ladies and gentlemen, it”s a good time for yours truly to
remind you all again of what the real Next Big Thing is…space.
When the heck are we going to recognize this?!
–Much was made this week of the lawsuit filed by the owner of
the Sudanese pharmaceutical plant that Bill Clinton ordered
destroyed as a way of diverting attention from the Lewinsky
scandal. We all now know it was simply an aspirin plant. But
why did news of the suit become a big deal with all manner
of publications and web sites just this week? Guys, I wrote about
it in this space 7/29/00…16 months ago.
–In the good old days, I often mused about the noble yaks of
Mongolia. Of course recent events preclude me from further
stories, but Charles K. sent me a note from the San Francisco
Chronicle concerning another new “in thing,” “yurts,” circular
residential structures (probably built by yaks), which were first
used by the Mongols and have today found willing buyers in the
U.S. Says one California owner.
“I”m so much more connected to the subtleties of the world. I
know the wind patterns, when rain starts and stops during the
night, how the light changes from month to month and season to
season.”
My question is, who is employing this guy?
–A few weeks ago I remarked that immigration was the key to
New York”s revival in the 1990s (as well as Rudy Giuliani).
This week Crain”s New York trumpeted, “Immigration helped
transform New York from a dying industrial giant into a 21st-
century city. Restrictions that threaten the latest wave could be
devastating.” In the 90s, immigration accounted for all the city”s
population growth.
–Well, inventor Dean Kamen unveiled ”IT,” ”Ginger,” this week.
It”s a scooter, the “Segway.” Of course I told you all in this
space back on 1/27 “it is probably a scooter.” The New York
Times wrote a glowing piece on this idiotic, $3,000 contraption,
which is designed to ride on sidewalks and will be illegal in most
municipalities. And no one is discussing what I brought up last
January, what the hell happens when it rains?
–All I want for Christmas is a clapper. Darnit, I don”t want to
wait until I”m 80!
–Speaking of hands, here in the home office we”ve always
recommended you wash yours 8, 10, even 12 times a day in
order to stay healthy. So it was with interest that I read an article
detailing how our troops in dusty, dirty Afghanistan are well
aware of the need to keep themselves as clean as possible. They
have learned from the Soviet experience in the land of rubble,
when 76% of the troops were hospitalized at least once, 89% of
these as a result of disease, much of which could have been
prevented with basic hygiene.
–Go ahead…wash your hands…I”ll wait.
–“Lord of the Rings” received a sterling review from
Newsweek, whose reviewer was the first to view the finished
product. I”m pumped.
–Mars”s polar ice caps are melting, suggesting the climate is
warming. Martian environmentalists said, “I told you so,” and
urged stricter emissions standards for their jet packs.
–Katie Couric”s performance on “Today” the other morning was
despicable. In interviewing the father of Daniel Petithory, one of
the 3 killed by friendly fire in Afghanistan, Couric clearly
wanted to embarrass President Bush and the military with her
line of questioning, but Lou Petithory would have none of it.
Finally, an exasperated Couric sneered, “Tell me why he was
there?” To serve his country, I hope every American was
instantly thinking as they questioned Ms. Couric”s own
patriotism. Mr. Petithory, clearly taken aback, said just that.
All of the parents and siblings of Petithory, Jefferson Davis, and
Brian Prosser are so proud of their accomplishments. I wish I
could tell them personally how grateful I am.
–Lastly, Donald Rumsfeld wrote an op-ed piece in Friday”s Wall
Street Journal about the 60th anniversary of Pearl Harbor and the
ties to Sept. 11. He concluded:
“When I think back to all those around their radios, as my family
was that day in our living room, I am reminded that they were
not only brave, but smart. In addition to physical courage, they
had moral courage – the kind of courage needed to acknowledge
reality, to learn from the tragedies of the past, to assess the
future, and then to make all those sacrifices of time, money and
self that are needed to live free.”
We remember Daniel Petithory, Jefferson Davis and Brian Prosser.
God bless our president and the men and women of our armed
forces.
God bless America.
—–
Gold closed at $274
Oil, $19.04
Returns for the week, 12/3-12/7
Dow Jones +2.0%
S&P 500 +1.7%
S&P MidCap +4.1%
Russell 2000 +4.4%
Nasdaq +4.7%
Returns for the period, 1/1/01-12/7/01
Dow Jones -6.8%
S&P 500 -12.3%
S&P MidCap -2.6%
Russell 2000 -0.5%
Nasdaq -18.2%
Bulls 45.4%
Bears 30.9% [Source: Investors Intelligence]
Have a great week. I appreciate your support.
Brian Trumbore
