[Posted 7:00 AM ET]
Wall Street
The casino remains open, if you can stomach the smoke and
mirrors. Down 700, up 700…all within six trading days for the
Dow Jones. As noted a while back, despite some protestations to
the contrary, clearly the hedge funds are a huge factor in this
market and will remain so until some kind of “accident” shakes
out the weaker players.
It’s also been interesting to see near 100% consensus that the
market is in the midst of a “bottoming process,” since not one of
these same experts had called for the plunge in the first place.
As for yours truly, I don’t feel we’re forming a bottom as much
as I believe we are laying the parameters for a broad trading
range, let’s just say 7000-10000 on the Dow for argument’s sake,
1000-2000 for Nasdaq, that will last for years…yet all within the
context of an ongoing bear market.
[To be technical, and anal, about it, this would mean that you’ll
see 20% rallies from time to time and analysts will use these to
proclaim that the ‘bear’ is dead. I won’t be one of them.]
Those who are touting a bottoming process are telling you the
market will take off, at some point. With the fundamental issues
facing the U.S. economy, let alone imminent, potentially
cataclysmic action in the Middle East (more later), I just don’t
see that.
But while I speak of a casino, yes, there were some legitimate
market moving events this past week.
First, you had talk that the Federal Reserve will elect to lower
interest rates when they get together August 13. I wrote last
week that if they did this, it would be “Panic City.” I still feel
that way (but give me at least 24 hours before judging whether
this was pure lunacy or not). Anyway, the consensus built that
this would be the case and it was, instead, a catalyst behind the
powerful rally of Tuesday through Thursday.
Second, the IMF, with the blessing of the U.S. (which has veto
power), announced it would provide up to $30 billion in funding
to bailout Brazil from its current monetary crisis. I have long
argued that the U.S. must be engaged in Latin America, and on
this I have been critical of the Bush Administration’s lack of
attention, so the loan program is a good start.
However, the initial reaction that all was now hunky-dory was
absurd. For starters, 80% of the IMF money will not be available
until after Brazil’s critical October presidential election. The
IMF was correct in structuring the package in such a fashion, but
let’s not presume that the leftist candidates currently leading in
the polls will necessarily act in the nation’s best interests should
one of them be elected. At week’s end they were talking a good
game, but this is Latin America, for God’s sake. While I
personally don’t have a stake in the region, if I was looking to
invest, I’d be willing to give up the next 20-30% up move, just to
be a little more certain that the crisis was truly over. If it is, there
will be plenty of profits for everyone.
Additionally, it certainly appears as though the bailout was not
just for Brazil, but also Citigroup, J.P. Morgan Chase and other
money center banks with huge exposures there. In the case of
Citigroup, to the tune of $9.5 billion. Sandy Weill, Robert Rubin
et al pushed the right buttons and voila! Balance sheet preserved
…at least for now.
Third, for a brief moment Cisco provided a bit of relief when its
earnings came in above expectations, though it also projected flat
evenue for the current quarter. Which leads me to a favorite
topic, clearly the prime mover of all market talk in this space…
valuation.
Cisco is now projected to earn 55 cents over the coming 12
months, so with a share price of $13, that’s a p/e of 24.
Compared to days of yore, when I was screaming about Cisco
multiples in excess of 100, this is quite an improvement. And
one also can’t help but note that Cisco, like Dell, now dominates
its space, so if you want to invest in the market leader and feel
that a decent rebound in spending on all things tech is around the
corner, be my guest. I’m not, but at some point down the road, I
could see looking at Cisco myself. [Long-time readers can now
reach for the heart medication.]
But on the broader valuation issue, I’ve been writing the last few
months of the $60 figure, that being the approximate earnings per
share estimate for the S&P 500 in 2003. Of course I have been
critical of it and this week Richard Cripps of Legg Mason (who
was never a hype-machine like some in his fraternity) lowered
his forecast for ’03 to $53. Others will follow and if we get the
double-dip some of us are calling for, $50 would be generous.
Oh, let’s call it $50. The S&P 500 closed the week around 900.
[908.] That’s a multiple of 18. For those who believe this is
attractive, fine. I just don’t see where you come up with a lot of
upside, beyond the inevitable spikes and emotional highs that
only a casino can provide.
Corporate Governance
I’ll be brief this time, but not for nothing, what do Enron,
Adelphia, WorldCom, Dynegy and Imclone all have in common
this past week? Investigations into malfeasance intensified, i.e.,
there is far more skullduggery to be uncovered than initially met
the eye. That tells me one thing. Those still claiming there are
only a few bad apples have been toking on some bad weed. It’s
still just the tip of the iceberg, but I will admit one thing. After
the November election, the call for blood may subside and that
would be a crime in and of itself. As for some of Wall Street’s
denizens, I imagine they are still frantically trying to hide their
personal assets. For them, it’s not over by a long shot.
Street Bytes
–The Dow and S&P 500 both registered 5% plus gains, with the
Dow closing at 8745, while Nasdaq broke its latest losing streak
with a 4.7% pickup of its own to 1306.
–U.S. Treasury Yields
6-mo. 1.59% 2-yr. 2.06% 10-yr. 4.26% 30-yr. 5.11%
Largely unchanged, despite a pullback earlier in the week as
some funds went back into equities from the Treasury market.
One conclusion that could be drawn if the Fed acts to lower rates
next week would be the feeling that Greenspan and Co.
desperately want to keep the real estate bubble going, especially
if consumer spending continues to slow. This would backfire, of
course, but that horse is already headed to the glue factory.
As for the reading on producer prices for July, which reflected a
decline of 0.2%, this tells you that manufacturers still can’t raise
them, ergo, tell me how you’re going to generate profits. It also
gives more ammunition for those in the deflation camp.
–Well, I was premature on two pronouncements. The gold rally
was not over, as I surmised, and for this I apologize (gold is up
about $10 the past two weeks), while the rally in the U.S. dollar
stemmed the slide against both the yen and the euro, at least
temporarily. The economic readings from Europe, in particular,
are just as punk as in the U.S. Factory production in the UK, for
example, hit its lowest level since 1979, while the major
economies of continental Europe are barely growing at all.
–Treasury Secretary Paul O’Neill gave a speech wherein he said,
“Our overwrought tax code is an abomination.” I imagine not
too many of you would disagree, but the statement gives me an
excuse to follow-up on a comment I made last week concerning
Bermuda and other offshore havens. I noted my displeasure with
one company, Nabors, in which I have invested from time to
time, only to sell my shares (luckily) last spring on word it was
incorporating where the men wear knee socks with their shorts.
I can understand why Corporate America, which is taxed at an
average 34% rate (Nabors is at 38%), would want to reduce their
burden, I just wish that in this current environment of corporate
malfeasance, some would have chosen to give Congress one last
chance to change its wrong-headed thinking on the matter, while
also doing a better job of stating their case to the public.
This week the Journal ran a piece on Ireland and its corporate
incentives, such as a 10% tax rate, which have attracted
numerous companies to the land of the pint. Frankly, I know
more about Ireland than the individual who wrote the piece, and
he omitted the fact that aside from right-thinking on taxes, the
nation has benefited in a huge way from massive European
Union subsidies (well-deserved, but subsidies nonetheless), the
fruits of which I have observed in my 12 or so trips there since
1989.
But Ireland’s authorities deserve a ton of credit for seizing the
opportunity and its tax policy is a model for others. For his part,
though, O’Neill needs to continue to put pressure on Congress to
tackle this issue soon, or the exodus will continue in one form or
another, regardless of what shareholders think.
–On August 17, 1982, Salomon economist Henry Kaufman
issued his famous memo that many feel was the spark to the
great bull market of 1982-2000. Actually, it really wasn’t that
bullish, but investors focused on his call that long-term interest
rates, then at 12 ¾% for Treasury bonds (they had been even
higher in the cycle), would decline to the 9-10% level by
yearend. The Dow Jones rose almost 5% that day and Kaufman
forever had his place in market lore.
I bring up this history tidbit because no one seemed to note the
timing of his latest op-ed piece this past week, almost 20 years to
the day of his great call, and Kaufman (now president of his own
shop) is back to his old “Dr. Doom” label. His big problem is
that the American household simply has too much debt, which
will inevitably impinge on spending, while there are lots of other
restraining forces, all too familiar to readers of this column, that
will continue to have a large impact on business spending as
well. Lastly, Kaufman makes a plea to eliminate the tax on
corporate dividends.
–Warnaco’s former CEO Linda Wachner is seeking $25 million
in severance pay. She also wants to be put at the head of the
creditor’s list for this now bankrupt company. May she meet
with much misfortune the rest of her days.
–Intel has chosen not to expense options. You may have noticed
I have said little on this topic. That’s because it’s not nearly as
important as other corporate governance matters and we also
should wait to see where the Financial Accounting Standards
Board comes down. They should determine the guidelines, not
Congress.
–For years I noted that it was necessary to spend as much time as
I did on Nasdaq because that’s where the money flows were.
Often, the daily volume on Nasdaq was twice that of the NYSE.
But times are different, and recently the volume between the two
has been practically identical. This is a good thing, amidst all
that isn’t.
–Barron’s Mark Veverka reported that Hewlett-Packard could be
an acquirer of EMC at some point. Great news for EMC
shareholders, right? Wrong. The potential 25% premium would
bring EMC stock up to, oh, about $8-$9 a share, based on its
current share price. [EMC traded at $105 on 9/25/00.] This little
story speaks volumes about where we’ve been and where we’re
headed in the sector.
–Similar to the above, Global Crossing was sold for all of $250
million to the same folks who previously agreed to pay three
times as much for it. At one point, the company had a market
cap of close to $50 billion.
–The IMF warned that the Japanese economy still has
“considerable downside risk” and that deflation remains a very
real problem.
–OPEC has been producing about 1.5 million barrels / day more
than the targeted production level, while at the same time Russia
(non-OPEC) is up to 7.4 mm b/d vs. Saudi Arabia’s 7.6 mm daily
production. Surprisingly, crude (as measured by W. Texas
Intermediate) has remained in a very narrow range of $26.50-
$27.50, despite the softening global demand, and it’s not because
of the war threat. A true war premium doesn’t appear to be
priced in right now. [My precious drillers, after a sorry start to
the week, rallied back on Thursday and Friday…so it’s premium
lager for the kid this weekend!]
–Nestle was once again in acquisition mode, acquiring Chef
America and its “Hot Pockets” brand (Nestle also has
Haagen-Dazs, Dreyer’s, Sugar, Salt, Fat, and Lard in its stable).
Hot Pockets are incredibly popular (from what I gather) and
loaded with fat, thus contributing to Americans increasing need
to gain weight. As my friend Jimbo notes, soon the average
number of pallbearers at a funeral will double.
–Clorox profits rose as sales of Tilex soared. You know what
they say, as Tilex goes, so goes the nation.
–As for Martha Stewart, I wrote in this space on 6/22 that her
supposed “stop-loss” order was a crock and since then there has
been no real need to comment further. Recent events only
confirm my initial reaction.
–In case some of you actually follow Jim Cramer’s stock
musings, spare yourself. The last few weeks I caught his Friday
conclusions on “Kudlow and Cramer.”
7/19 – Sell any rally, “this is serious!”
7/26 – “I’m buying.”
8/2 – “I raised cash.”
8/9 – “I put more money to work again this week,”
Clash of Civilizations
Way too much was made of Saddam Hussein’s speech to his
people this week, preparing them for war. On the other hand, the
release of a report to the influential Defense Policy Board
concerning U.S. / Saudi relations was earth-shattering.
The analysis, presented July 10, described the Kingdom as “the
kernel of evil, the prime mover, the most dangerous opponent” in
the Middle East and recommended that the U.S. give the Saudis
an ultimatum to shape up or we’ll take over the oil fields.
The release of the report forced the Bush Administration to deny
this was official policy, at which point the talking heads that fill
the airwaves blasted Bush for being a wimp.
That’s not really fair, but, at this point in time, these guys are
missing the big picture. So your editor will give it to you, while
thinking outside the box.
Bush, Cheney, Rumsfeld et al have their hands full working out a
game plan for Saddam. The feeling here is that we could still see
something in October, despite all the “early 2003” talk. It might
not be a total cakewalk, but the worst could be over in a matter of
weeks.
That’s just for starters, because I’m now of the opinion that we
could be witness to a repeat of 1989, as in cataclysmic change
throughout the whole Arab world. Iran, for example, may follow
within a matter of months in a massive, albeit potentially bloody,
revolution, once the people see an exhibition of America’s
commitment in Iraq.
Which would take us into early 2003, and with Iran and Iraq now
under Western influence (installing the new regimes, though,
may not be as easy as the actual overthrow), Saudi Arabia will
undergo its own popular revolt for change, and while this is
going on, similar actions will be taking place in Jordan, Egypt,
Gaza and Syria. Again, just as in the aftermath of the Wall
coming down, events could move at light speed.
Oh, sure, there will be some awful moments and tests of our
national will, as some desperate dictators breathe their last, and
the shape of new governments may not initially be to America’s
liking. But what U.S. leaders, both Democrats and Republicans,
now understand all too clearly is that the status quo in the Middle
East is no longer acceptable, for the simple reason that over time
weapons of mass destruction will increasingly fall into the hands
of those who deign to kill us, unless real change is effected.
So spare your breath, fellow pundits. We all know Saudi Arabia
is an enemy, but first things first. Pray that the Bush
Administration sticks to its principles (with Cheney and
Rumsfeld we can rest easy) and moves on Saddam quickly. The
rest of the scenario could then unfold in ways too startling to
imagine, and the Kingdom may become an early victim.
More International Affairs
China / Taiwan: Last Saturday, Taiwan’s President Chen Shui-
bian gave a formal speech and dropped this bombshell. “Simply
put, with Taiwan and China on each side of the (Taiwan) Strait,
each side is a country. This needs to be clear.” This was similar
to a 1999 statement by his predecessor calling for a “state-to-
state” relationship between the two, which almost brought war
with the mainland.
China adheres to a “one China” policy and wouldn’t stomach a
Taiwan that declares its full independence. This is a part of the
world where each word is parsed so Chen’s comments were
unsettling to Beijing.
They were also disturbing to Taiwan’s business community,
which has been making great inroads into the mainland and,
along with opposition political forces, labeled Chen reckless.
But when all was said and done, the fact remains that even if
Beijing wanted to create some mischief at this time, China’s
communists more than have their hands full with the ongoing
change in leadership, which should reach some kind of climax in
November at the Party Congress. In the meantime, the leaders
will lob their own rhetoric across the Strait, saying that Taiwan’s
pursuit of independence would “bring Taiwan into disaster,” the
latter a common statement this past week. Upcoming scheduled
military maneuvers should also not be cause for real concern.
[For its part, Chen canceled Taiwan’s exercises in an attempt to
lower the tension.] Come yearend, however, we’ll see who
emerges in the new Chinese power structure.
Afghanistan: The earlier Iraq et al scenario aside, it is
increasingly clear that the U.S. will be involved in this theater for
years to come, witness the past week’s bloodshed. The frontier
remains under warlord control and U.S. and coalition forces are
increasingly at risk.
Pakistan: Related to the above was an increase in terrorism in
this land of fanatics, particularly directed against Christians and
their institutions. President Musharraf was conspicuous by his
absence, it seemed, which shouldn’t give the West a warm, fuzzy
feeling.
Iran: Russia appears to be responding to U.S. pressure on the
issue of helping Iran build additional nuclear plants, beyond the
few already under construction…a good sign.
Iraq: Just a few other notes on the imminent operation. Victor
Davis Hanson, a foreign affairs expert noted before in this space,
opined that the U.S. should be prepared to go it alone against
Saddam, a sentiment that I don’t necessarily disagree with, but,
despite the internal political problems that Britain’s Tony Blair
faces, I still feel he’ll be there with us (which would be a real
profile in courage, because opposition is heating up). Turkey
will also be alongside, despite its own internal problems, and at
worst the U.S. will be able to use its vital Incirlik air base.
One nation that apparently won’t be tagging along is Germany, at
least initially, as Chancellor Schroeder this week criticized
American “adventures.” Like World War II, Gerhard?
I also noted that Senator Biden, appearing on “Meet the Press,”
said Russia could lend some support in an operation against Iraq,
but he didn’t carry it a step further. I still say the U.S. should be
cutting a deal with Moscow for both Iraq and Iran. [Maybe we
are.] Don’t stand in the way and we’ll share the spoils.
Lastly, the U.S. is preparing the Strategic Petroleum Reserve for
a worst case scenario of supply disruptions.
Colombia: New President Alvaro Uribe was inaugurated on
Wednesday and the rebels that have been battling the
government for decades used the occasion to launch a mortar
attack near the presidential palace and the festivities. 19 were
killed. This despite the fact the Army had something like 9
different security rings around the event.
Uribe ran on a platform of destroying both the guerrillas (FARC)
and the right-wing paramilitaries, vowing to double the size of
both the Army and the National Police, as well as enlisting one
million citizens to be informants for the government. The
president has the support of the U.S., but it seems likely
American involvement will deepen beyond the already
substantial $2 billion military commitment. Keep your fingers
crossed here. If Uribe can somehow succeed, it is a huge
positive for the entire region. If he’s ‘taken out’ (the man has
already survived 18 assassination attempts), it’s a catastrophe.
Zimbabwe: Friday was the deadline for all white farmers to
vacate their land (some chose not to do so and we await the next
move by the government). In many cases 3 generations have
toiled to build businesses that fed the nation, and now President
Mugabe won’t even pay them a penny for their property. Of
course Mugabe’s nation is hard-pressed to find even two nickels,
such is the plight of this wretched place. And as the famine
spreads, add in the fact that 25% of the population is HIV
positive and you have a recipe for disaster. Hundreds of
thousands may perish within months. I imagine the God I
believe in is crying, “Take Mugabe out!” But the West and
Zimbabwe’s neighbors are morally too weak to act heroically in
this instance.
Northern Ireland: In case you watched the recent excellent PBS
series on the peace process, you’ll remember a Protestant
extremist, Johnny “Mad Dog” Adair (the big, burly guy with the
tatoos). Well, this week his son was “kneecapped” (shot in both
legs), but it was purely an internal feud among loyalist groups.
Lovely.
Random Musings
–Columnist Jim Hoagland / Washington Post:
“Epochal change is difficult to grasp as it occurs. But there is a
rare clarity to the historic shift that is now underway. The world
is moving from an era in which responsibility to self was the
overriding value in business and politics toward a time in which
responsibility to one’s society, nation and fellow beings returns
to the front line of thought and discourse.”
–Daniel Henninger wrote a super piece in Friday’s Journal,
discussing the upcoming ceremonies for September 11 and what
it should really mean. If you’re not from the New York area, just
understand that the media has laid it all out and the remembrance
promises to be “powerful,” in the words of Mayor Bloomberg.
For starters, picture bagpipers from each borough simultaneously
descending on Ground Zero. In addition the governors of New
York and New Jersey will read the Gettysburg Address and
Declaration of Independence, while Rudy Giuliani and others
read all of the victims names. Finally, family members will be
allowed onto the actual ground for the first time.
But since September 11, as I’ve written from time to time in this
space, I’ve been leery of making too much of this single day
because our nation has so many trials and tests of will to come.
Thankfully, we haven’t been attacked in 11 months, but as
Henninger writes, this developing sense of complacency is not
healthy, concluding:
“During those September days we will surely prove that we’re all
good at remembering what was done to us. But some of us are
proving to be less good at remembering what we still have to do
about it, and why.”
–I caught Robert Bork on “Capital Gang” last week and like the
vast majority who just listen to the man, sans political prejudice,
he never fails to make eminent sense. One of his big issues these
days is that trends in obscenity and pornography in our popular
culture (like the garbage that passes for network television)
“corrupt us all.” Ain’t that the truth. Bork also gave President
Bush a “C, C+.” Sorry, folks, that’s what I give him as well,
though I see improvement coming.
–West Nile virus is spreading rapidly and is responsible for at
least 7 deaths in Louisiana. The problem is there is no stopping
it, only prevention. The one thing that would kill the virus, I
mused earlier in the week, would be a new ice age, only that
would do a number on the golf courses. But wait. Our own Dr.
Bortrum writes this week that scientists are concerned we could
have that ice age in as little as ten years. Read his latest, it’s
enlightening. [As an aside, I played golf this week with the
eccentric, 74-year-old Bortrum, and he was hitting it better tee-
to-green than he ever has, at least since I’ve known the chap.]
But back to West Nile, it was just last summer that I passed
along the thoughts of Mark R. and his idea for getting into the
screened porch business. [Alas, Mark remained a financial
advisor, forced to fend off the slings and arrows of a surly
public.]
–Salomon Smith Barney analyst Jack Grubman, Bernie Ebbers’s
butt-boy, gave $100,000 to the Democratic Party (check the
watermarks) days before WorldCom hit.
–And then there is Prince Albert Gore, the man who wouldn’t go
away. In last Sunday’s op-ed piece in the New York Times,
Gore had the following words of wisdom.
The Democrats are “for the people, not the powerful.” Barf.
There are “bad apples in the White House.” Defibrilator?!…
…Clear!!
I still eagerly await Bruce Lindsey’s deathbed confession.
–My respect for the Pennsylvania miners grew even more when
I heard that all 9 had agreed as a group to accept $150,000 each
from Disney for a television movie and book deal on their ordeal.
They obviously could have held out for more, but these are
honorable men, unlike the merchants of greed who go by the
names of Kozlowski, Nacchio, and Wachner.
–So as you know, much of Europe basically takes the entire
month of August off. But on Saturday the 3rd, clearly too many
motorists hit the roads in France, resulting in a 110-mile traffic
jam on one stretch. That’s right, not 11, but 110 miles.
–Philanthropy: As you know, I’ve been wrestling with this topic
for months. It’s tough to write about it without offending more
than I already do, and it also doesn’t help that I have some
personal prejudices resulting from where I live.
The suburbs of New York City (New York, New Jersey and
Connecticut) are peopled with both rich and poor, but as to the
former we have some of the wealthiest individuals in the world,
thanks in great part to the proximity to Wall Street. To get a
sense of some of the characters you have in this area, one need
only pick up the Sunday Times Style Section, which contains
pictures and tales of the most obnoxious and pretentious rich
people you ever will see.
So with this as background, you may recall how after September
11, I probably went over the top in urging folks NOT to give to
the various funds, because you had no idea where the money was
going. As it turned out, I was right. [What I personally did
instead, as I wrote, was go to the local police chief (a friend) and
hand him my check. “Give it to a widow who needs it.”]
But what has troubled me recently is the fact that when you see
the stories of the corporate dirtballs being hauled in, every single
one is known as a “philanthropic person.” It’s all a bunch of bull.
More troubling is the fact that many in the same communities
actually seem upset that their patrons may no longer be able to
support their causes!
The current issue of U.S. News has a piece on the impact on
charities and how in the case of Adelphia’s John Rigas, people
are complaining that he will no longer be donating $400,000 to
causes like the United Way. And you probably recall the initial
reaction when Enron hit, as some of the people of Houston said,
“Oh, but they were such supporters of the arts.”
But, to me, the clincher was contained in the Wall Street Journal
article detailing the many ways Dennis Kozlowski looted Tyco.
Among them was a $5 million gift he gave to his alma mater,
Seton Hall, to have a hall built in his name. He used freakin’
Tyco funds for this!
And therein lies my point. There are philanthropists and there
are egomaniacs. It’s not the goal of this diatribe to go back into
history and analyze the charitable contributions of Andrew
Carnegie, Henry Clay Frick, the Rockefellers et al. I was telling
a friend the other day that every time I go to Vienna and tour the
spectacular museums there, I can’t help but think to myself,
“Thank God for the dirtball Hapsburgs!”
No, my concern is with the latest generation of so-called do-
gooders. Some have all manner of things named after them, but I
would respectfully submit that in many cases, it’s mostly to
cover their ass, aside from feeding their egos.
You know who we should be praising these days? For starters,
people like Bill Gates, who has done more for Africa than
anyone in the history of mankind with his foundation that is
trying to vaccinate the people against various diseases. Bono
gets a lot of grief for his work, but he’s helping his fellow man,
while neither is looking for edifices with their names plastered
on them.
Bruce Springsteen is another known for giving back
spectacularly to the communities of New Jersey, while doing it
without publicity. Country star Travis Tritt just gave $25,000 to
the volunteer firefighters who helped rescue the Pennsylvania
coal miners.
And for all the crap we give high-profile athletes (and I’m first in
line to do so), many of them are not only giving of their time, but
also substantial amounts of their money, for causes that do good
and lift spirits.
That’s all I’ll say on this topic, except to acknowledge acts both
good and bad in the future. As columnist Robert Samuelson
(back in my good graces) wrote the other day in a piece focusing
on J.P. Morgan, who did good things himself, “Don’t mistake
money for character.” To which I’d add, when you read the tales
of people like Kozlowski, don’t give them a free pass because
they slipped a few bucks to your favorite cause. With apologies
to Dennis Miller, that’s just my opinion. I could be wrong.
–A former Salomon employee on I.P.O allocations, as told to the
New York Times’ Gretchen Morgenson.
“If you were an insider back then, you had a pretty good life.
There was a lot of money made, and they shared it between
themselves. What bothers me the most is that some people made
out so well and so many other people lost everything.”
–Needless to say, I’m happy for the Siamese twins who were
separated this week, but did we need to see the pictures of the
actual separation? Goodness, gracious.
–The Justice Department reported that 400 laptops are missing
since 1999, many of which contain sensitive data. If you have
one of these, please return it. It would make the rest of us feel a
whole lot better.
–P.J. O’Rourke on one of the advantages of corporate
corruption.
“Potentially, our own sex lives also are improved. Numerous
senior executives’ trophy wives will soon be running around
unattached. We wouldn’t have stood a chance with these women
before the legal bills arrived and the skinny blondes got poor.”
–Follow-up to our story of last week concerning the pilot whales
of Cape Cod. Johnny Mac wrote, “Memo to all pilot whales…
suggest that for every pod, you include at least one navigator
whale.”
–Months ago I offered up that every state should outlaw
cellphone use while driving, an opinion for which I caught heat,
especially from loyal reader Kate L. Well, Kate, I now ask for
your forgiveness since a new study shows that eating while
driving is just as dangerous. Specifically, coffee or hot soup
could endanger lives. I’ll admit that I should probably not be
eating lobster thermidor while I tool around. Cheese fondue is
another one.
God bless the men and women of our armed forces. As General
Myers said on “Today” Friday morning, don’t forget them.
God bless America.
—
Gold closed at $314
Oil, $26.86
Returns for the week, 8/5-8/9
Dow Jones +5.2%
S&P 500 +5.1%
S&P MidCap +4.1%
Russell 2000 +3.2%
Nasdaq +4.7%
Returns for the period, 1/1/02-8/9/02
Dow Jones –12.7%
S&P 500 –20.9%
S&P MidCap –14.1%
Russell 2000 –20.5%
Nasdaq –33.0%
Bulls 35.5%
Bears 39.8% [Source: Investors Intelligence]
Have a great week. I appreciate your support.
Brian Trumbore
