[Posted 7:00 AM ET]
Wall Street
It was a week bereft of economic news but there was plenty of
debate concerning the Big Picture. For example, the World Bank
offered that the global recovery “is at a turning point. Growth
has peaked, and pressures to address global imbalances are
growing…chances increasing for global recession.” No
argument here, as any long-time reader knows.
On the energy front, however, oil plunged $4 to $53, its largest
decline in four months. The inventory picture continues to look
solid and Federal Reserve Chairman Alan Greenspan said
eventually higher inventories could supply a buffer to dampen
the current “price frenzy.” In the area of natural gas, Greenspan
added that higher prices are encouraging development, another
good sign.
But then the IMF said oil prices continue to present a “serious
risk to the global economy,” though a survey for the Wall Street
Journal revealed 80% of economists now believe oil has to be at
least $80, sustained, to trigger a recession.
No doubt the relatively minimal impact of $50 oil on the U.S.
economy overall (save the airline sector) has surprised a lot of
folks, but ask Europeans and some in Asia how they feel about
the current level of prices. It’s beginning to bite, witness another
lowering of the estimate for growth in the European Union to just
1.6% for 2005. [Retail sales in the E.U. have also fallen three
months in a row thanks in large part to oil.]
And then there is real estate. Holders of adjustable rate
mortgages are beginning to see the impact of rising short-term
interest rates and even with still historically low ones the fact is
people are shelling out more and that has to reduce spending
somewhere along the chain.
In California 48% purchased their home using interest-only
mortgages last year which spells bubble trouble, i.e., potential
negative equity. [Also, of 51,000 buyers who paid $1 million or
more for their home in 2004, nationwide, 65% were in
California.]
Yale economist Robert Shiller correctly called the equity bubble
in 2000 with the publication of his book “Irrational Exuberance”
and now he is saying the real estate party is going to end just as
badly. But in an op-ed for the Los Angeles Times, Shiller said
the bubble won’t necessarily pop because of rising interest rates
or a recession.
“In a bubble, high prices are sustained only by the expectation of
more high prices. That is what makes a bubble a bubble, prone
to bursting. The reason we cannot expect a soft landing today is
that right now people are willing to pay these very high prices
only because they expect them to go up even more in the future.
Prices can’t just level off, because when people no longer expect
them to go up, some of them will not want to hold at the high
price.”
Finally, Chairman Greenspan and others commented on
mortgage giants Fannie Mae and Freddie Mac, their $1.5 trillion
in holdings and the systemic risks inherent in having
organizations this large. Greenspan said:
“We at the Federal Reserve remain concerned about the growth
and magnitude of the mortgage portfolios of the Government
Sponsored Enterprises, which concentrate interest rate risk and
prepayment risk at these two institutions and makes our financial
system dependent on their ability to manage these risks.
“To fend off possible future systemic difficulties, which we
assess as likely if G.S.E expansion continues unabated,
preventive actions are required sooner rather than later.”
Greenspan wants to significantly downsize the portfolios of
Fannie and Freddie and insists this can be done in an orderly
fashion. Of course what he is concerned about is the topic I’ve
raised for over a year now. Fannie, in particular, is a black box
to the extent no one really knows what would happen to the
derivatives holdings under extreme circumstances. [Actually,
some of us do know…it wouldn’t be good.]
The IMF was even more blunt on the topic of credit derivatives.
“If market conditions turn negative, many investors in these
products could rush to the exit at the same time, causing market
liquidity shortages that could amplify price movements.
Furthermore, elements of risk management systems designed to
deal with these complex products have not been through a live
test, particularly to see if in time of need, counterparties stand
ready to absorb the additional market and credit risks from those
who would like to shed them.” [Wall Street Journal]
Bingo.
Street Bytes
–The Dow Jones and Nasdaq broke their 4-week losing streaks
though the gains were tempered by a Friday sell-off. Overall the
Dow advanced 0.5% to close at 10461, while Nasdaq tacked on
0.7% to 1999. The S&P 500, which had eked out a gain the prior
week, also added 0.7% to 1181.
There were two big mergers / acquisitions this week, both in the
neighborhood of $18 billion. ChevronTexaco is merging with
Unocal to take advantage of the latter’s exposure in some regions
not actively covered by Chevron, while Time Warner and
Comcast are acquiring the assets of former cable giant Adelphia.
Earlier in the week, Moody’s became the third ratings agency to
lower General Motors’ debt to just one notch above junk, citing
the automaker’s uncompetitive cost structure…like the now
commonly known fact it costs G.M. $1,500 per vehicle to pay for
its workers’ health benefits. [After the bell Friday, Ford
announced it was slashing its earnings forecast for ’05 and S&P
immediately cut its debt rating to a notch above junk as well.]
–U.S. Treasury Yields
6-mo. 3.13% 2-yr. 3.75% 10-yr. 4.48% 30-yr. 4.76%
Yields were basically unchanged on the week with the lack of
economic data to move the market. Thanks to the likes of G.M.,
however, credit spreads are widening.
–Mexico’s stock market has been roiled by politics as the current
leader in the polls for next year’s presidential election, the mayor
of Mexico City, has been impeached by Congress over his role in
a relatively minor property dispute. It’s a classic case of politics
as usual in Mexico and a giant step backwards for political
reform here. Granted, the mayor is a leftist and not favored by
Washington, for example, but it’s not exactly a shining moment
for democracy. The mayor vows to campaign from jail if
necessary. This situation bears watching.
–Europe and the United States are responding quickly to the
surge in textile exports from China, following the lifting of global
quotas, in threatening to re-impose limits. China responded
“address your own problems.” Not exactly what some in the
West like to hear, nor do they take seriously the thoughts of
Chinese Premier Wen Jiabao who this week told an Asian
economic forum his nation will not become a threat to others as
it develops.
–The saga of AIG gets murkier and murkier, even as New York
Attorney General Eliot Spitzer bailed out the stock, at least
temporarily, when he said the board was cooperating and he
thought an amicable agreement on penalties could be reached.
We are learning, for instance, that AIG destroyed records and
doctored reports involving its various subsidiaries, including the
Starr International division that former chairman Hank
Greenberg used to control deferred compensation for AIG
executives. [Greenberg still technically controls Starr, though
for how much longer is obviously up in the air.] And it turns out
that Warren Buffett turned Greenberg in in order to save his own
skin, at least according to the Journal.
But when it comes to AIG’s corporate structure, here’s a report
from Richard Wilner of the New York Post.
“Under one corporate channel of the far-flung AIG empire, the
Schedule Y shows that AIG owns 100 percent of National Union
Fire Insurance Company of Pittsburgh, which owns 100 percent
of AIG Silk Road Investors, which in turn owns 100 percent of
something called AIG Caspian Oil Holdings Ltd.
“Some entities are owned directly by AIG but most are owned
through a network of wholly- or partially-owned subsidiaries….
“(And) executives at the company last week had to take the
embarrassing step of acknowledging that they had just learned
that an AIG business partner was actually not independent but
controlled by Greenberg’s machine.”
You know what? We keep hearing from analysts how AIG’s
stock is now undervalued and that the damage resulting from the
investigations has minimal impact on the bottom line.
I submit, however, that not only don’t we have a clue what AIG
was really doing, it’s time for someone to step up and call it what
it increasingly appears to be…….a Ponzi scheme.
–Early in the week Pfizer announced a major restructuring plan
including downsizing of its bloated sales structure and Wall
Street applauded the move. But then the FDA forced Pfizer to
withdraw painkiller Bextra from the market as well as slap the
black box on warning labels for Celebrex and other painkillers.
Bextra, in particular, is being singled out for its increased heart
risk. Pfizer is now getting ready for a slew of lawsuits, a la
Merck and Vioxx.
–The Supreme Court ruled that IRA accounts now join 401(k)s,
pensions and Social Security benefits in being protected from
creditors in bankruptcy proceedings; a key for those who may
face a financial crisis in the midst of a job change.
–In a survey gauging ‘retirement confidence,’ 65% of workers
are “very confident” or “somewhat confident” of funding their
retirements, but at the same time 51% say they are falling behind
in their savings schedule and 52% have put aside less than
$25,000.
–The SEC approved by a 3-2 margin the controversial ‘trade-
through’ rule which requires brokers to find the best price on a
trade, whether on the floor or at an electronic market. Opponents
say this impedes flexibility. I would argue that while the SEC
says this will save investors $100s of millions, and in theory it
might, it’s really much ado about nothing…we’re talking
pennies…and opponents correctly bring up the time element
involved. Markets can move away from you, the investor, while
the broker is out looking for a better deal.
–Morgan Stanley CEO Philip Purcell said he had the full
backing of the board and it was time to “move on.” Not so fast,
bucko. While the board did approve the sale of the investment
bank’s Discovery card unit (said to eventually bring $8-$9
billion), Morgan Stanley faces new sanctions from the SEC for
failing to retain e-mails. As for the dissidents, they’re not about
to go away.
–The Wall Street Journal had a front page story on “click fraud”
in the online advertising industry. I addressed this topic from
personal experience a number of months ago and it’s a big reason
why I feel prospects for this industry are vastly overrated. Fraud
is rampant, folks, and I am severely limiting my own online
advertising dollars, opting instead to go the traditional route. Of
course there are good outfits (I maintain a relationship with one)
and bad ones. Stick with the major players who have the biggest
incentive to keep it as clean as possible.
–MCI rejected Qwest’s $8.9 billion bid for Verizon’s $7.5
billion but MCI’s largest shareholder continues to insist it’s too
low and a shareholder vote looms.
–New York Attorney General Eliot Spitzer addressed critics who
say he has gone too far in his investigations into Wall Street in a
Journal op-ed. Excerpts:
“Why wouldn’t the Journal and business lobby groups denounce
such improper conduct? Why wouldn’t they advocate the highest
standards and urge prosecutors to root out the corruption and
restore the integrity of the markets?
“Part of the reason is a mistaken belief that enforcement is bad
for the economy. This is a major misconception rooted in an
outdated ideology that fixates on examples of intrusive
government regulation in the distant past. Today’s situation is
qualitatively different. We are now combating a series of
problems arising almost exclusively from the abandonment of
basic concepts in business ethics – concepts like fiduciary duty,
transparency, accountability, and fair play. This conduct betrays
the core principle of our economic system: full, fair competition.
Prosecutors are compelled to respond, and they have done so in
ways that are targeted and measured. In this regard, here are
some simple truths about recent enforcement actions:
“First, rather than ‘killing the goose that laid the golden egg’
…enforcement of the rules has helped level the playing field for
honest corporations and has encouraged competition based on
performance and value, not impropriety….
“Second, enforcement of the rules has helped prevent continued
misallocation of capital….
“A key lesson from the recent scandals is that the checks on the
system simply have not worked. The honor code among CEOs
didn’t work. Board oversight didn’t work. Self-regulation was a
complete failure. But one thing has worked: law enforcement….
The choice is between an ossified status quo that erodes public
confidence, and bold action to restore accountability, integrity
and true competition to the markets. It’s obvious what we need
to do: We need strong enforcement of existing laws. It’s the
right thing to do and it’s good for the economy as well.”
–My favorite retailer, Bed Bath & Beyond, reported better than
expected results for the quarter and its shares surged. The
employees here have a terrific attitude…which is one reason why
I never fail to leave without at least buying another ice cream
scoop.
–Internet speeds over broadband are expected to increase 400-
1600% over the next two years, which means people will be able
to rip off movies at a far greater rate than today.
–In 1973 George Steinbrenner and his cronies purchased the
New York Yankees for $9 million. Today the franchise is worth
up to $1 billion. [$950 million if closer Mariano Rivera doesn’t
get his act together soon.]
–My portfolio: No changes. Still roughly 15% equities and 85%
cash….the latter moved to an undisclosed location after flooding
of the Delaware River forced me to dig up the tin cans holding
said greenbacks.
Foreign Affairs
Iraq: Finally we have a government and not a minute too soon.
The top post, prime minister, will be held by Shia Ibrahim
Jaafari. The president is Kurd Jalal Talabani. The two vice
presidents are a Shia and Sunni, while a Sunni is parliament
speaker. The task ahead is a daunting one, however, and it’s
going to be tough to meet the deadline of writing a constitution
by August, let alone holding full elections in December. But at
least the people know who the players are and it’s time to hold
them accountable.
I keep mentioning how important the poll numbers are for the
White House, though, since it’s important to maintain support
back home if the operation is to be funded at the level required.
Along these lines there was a disturbing Pew Research Center
survey this week that shows for the first time a majority of
Americans, 50-48, believe the Bush administration deliberately
misled the public about Iraq’s weapons of mass destruction. With
attitudes like this the danger is most Americans will say, OK,
Iraq has its government, let’s pull out. It’s way too early for that.
Israel: President Bush is meeting with Israeli Prime Minister
Sharon in Crawford, TX, on Monday and we’ll be watching to
see just how tough the president is on Sharon’s plans to expand
existing settlements. Bush said this past week that the “roadmap
calls for no expansion” yet U.S. politics may intervene. Here’s
hoping the president is firm.
But for a longer term view of the Israeli – Palestinian conflict,
Benjamin Schwarz, national editor for “The Atlantic,” had the
following observations in the May issue.
“More troublesome still, a Palestinian state hemmed in between
the Green Line and the Jordan and in the Gaza Strip will face
astronomical population growth (the population in Gaza now
doubles every generation, and an enormous influx of former
refugees now living throughout the Arab world – mostly in
Jordan, Syria, and Lebanon – is almost certain), scarce water,
and dire economic conditions. [The obvious outlet for
Palestinian labor – Israel – will perforce be tightly closed;
otherwise the sort of creeping immigration the United States has
experienced from Mexico would swamp Israel, thereby
subverting efforts to maintain a Jewish state.]
“A host of realistic Israeli observers, including Israel’s national
security adviser, General Giora Eiland, doubt that the area
between the Mediterranean and the Jordan contains enough land
and resources to sustain two viable sovereign states. In few
places in the world do conditions more demand that two peoples
develop a symbiotic relationship; in no other place are the
chances of building such a relationship more remote.”
China: Beijing will vigorously oppose any attempt to increase the
size of the U.N. Security Council to 24 members as Secretary
General Kofi Annan has proposed. China adds that any increase
must be approved unanimously by all 191 members, meaning a
single veto could derail a candidacy.
Similarly, South Korea is seeking to block Japan’s bid to win a
permanent seat on the Council. Seoul’s ambassador to the U.N.
told reporters Japan was “not entitled,” adding, “A country that
does not repent for its historical wrongdoings and that does not
have the trust of its neighbors cannot play a leadership role in
international society.”
Japan: Directly related to the above, both South Korea and
China are furious with Japan over the latest version of its “New
History Textbook,” even though only a handful of school
districts in Japan are likely to adopt it.
The book refers to the 1937 Nanking Massacre as an “incident”
in which “many” Chinese were killed (try anywhere from
100,000-300,000) and it avoids using the word “invasion” when
referring to Japan’s military occupation of other Asian countries
in the first half of the last century.
China’s Foreign Minister Li Zhaoxing said “Only if (a country)
can properly handle her history will it be able to face reality and
the future properly.”
According to reports, mobs on the mainland have attacked
Japanese businesses for both its push to gain a seat on the
Security Council as well as the textbook.
For its part, Japan is especially ticked at South Korea, saying it
has worn out the history card while pointing out a normalization
treaty was signed 40 years ago. And in the case of China, Tokyo
has expressed concerns over rising anti-Japanese sentiments.
“Every day (China’s youth) is reminded of the brutalities in the
war. They don’t know or appreciate Japan’s efforts to become a
peaceful nation after the war,” said a Japanese spokesperson.
The China Daily replied, “Without a consensus on the history
issue and other disputes, the Asian peoples cannot place their
trust in Japan’s desire to play a bigger role in world affairs.”
Smells like war…over energy, in the long run.
[Sources: Financial Times, South China Morning Post]
Russia: We are just one month away from Russia’s grand
celebration, May 9, marking the 60th anniversary of the victory
over Nazi Germany. President Vladimir Putin has been pleading
with world leaders to show up and most, including President
Bush, will. But you’re going to see more and more stories of
how monuments to Stalin are going up across the country and
how Volgograd may revert back to its old name of Stalingrad.
So it begs the question, why have Poland and the Czech
Republic, to cite but two examples, been able to go the
democratic route and not Russia? The answer is no one with the
moral authority of a Karol Wojtyla or Vaclav Havel has emerged
here.
One other item to watch over the next few weeks is
announcement of the Kremlin’s final plans for the Siberian
pipeline to the Pacific coast, a decision that will greatly impact
Japan and China and, inevitably, relations between these two.
Taiwan: President Chen Shui-bian attended the funeral of Pope
John Paul II since the Vatican recognizes Taiwan, Taipei’s only
European ally. But Chen is all too aware of the realities of today
and the Vatican is contemplating resuming ties with China, at
Taiwan’s expense, but only following extensive negotiations and
a guarantee Catholics will have religious freedom on the
mainland.
Turkey: The government is making an attempt to reduce tensions
with the U.S. and will now allow use of Incirlik air base for
military operations in the Middle East, this despite the fact 80%
of Turks still see the U.S. as a threat to world peace.
Zimbabwe: President Robert Mugabe warned the opposition
M.D.C. party not to protest following the recent fraudulent
parliamentary elections that assured another term for Mugabe.
The M.D.C. actually lost seats compared to the last vote in 2000.
But one figure could soon emerge as the true voice of opposition
and that is Archbishop Pius Ncube who has become increasingly
vocal in criticizing the M.D.C. for not having a plan for protests.
“The M.D.C. must act. They can’t expect people to act by
themselves. They (the people) want to leave it up to God. What
I say is God helps those who help themselves.” [The Times of
London]
[Mugabe showed up at the pope’s funeral despite a European
Union ban on his traveling there.]
Canada: Ever notice how long Canada’s coastal borders are?
You know how many submarines it has in its fleet? Four. And
since a fire on one claimed a life last October, you know how
many subs Canada currently has patrolling the seas? Zero. And
Canada won’t cooperate with the U.S. on missile defense. I’m
thinking we send some commandos in to take over Canada’s oil
shales. 8-10 is all we probably need.
Colombia: 17 soldiers were killed in an ambush perpetrated by
rebel group FARC. Colombia’s leadership blamed the military
for being careless.
Central America: Four presidents (Honduras, El Salvador,
Nicaragua, and Guatemala) have pledged to help combat the
gangs that are literally taking control in the region as they press
their reign of terror…and move north into the United States.
Britain: The general election is set for May 5 (don’t you wish our
campaigns were this short?) and while 65% are disappointed in
Tony Blair’s Labour party, only 32% would rather have a Tory
government, which speaks volumes about Tory leader Michael
Howard.
Northern Ireland: Sinn Fein leader Gerry Adams declared it was
time for the IRA to lay down its arms and pursue its grievances
through the political process. After the action of the past few
months, though, Adams has zero credibility and no control over
any splinter groups that still pose a tremendous threat on the
terror front.
Random Musings
–Either North Korea or Iran is going to test a nuclear bomb this
year and it will shake the financial markets to their core. Time to
resume sleeping with one eye open.
–President Bush registered a 48% approval rating in two major
polls this week and is clearly struggling with his domestic
agenda in particular. The Washington Post’s David Ignatius had
the following observation.
“I asked one of Bush’s political advisers recently why the
president hadn’t worked more closely with congressional leaders
to deal with America’s serious financial problems. He answered
that this president has no interest in dickering with committee
chairmen over the details of legislation. Bush is a man of large
ambition who wants big, bold victories – who wants to hit home
runs rather than singles and doubles.
“To me that’s the heart of Bush’s problem. He’s swinging for
the fences, on everything from Iraq to Social Security. But
leadership isn’t jut about soaring rhetoric; it’s about responsible
stewardship. And in the end, it’s about solving problems.
Perhaps that’s the real reason the president has lost momentum
since that remarkable Inauguration Day speech. The country
elected him to be a leader, not a barnstormer.”
–House Majority Leader Tom DeLay is not the first to have his
wife and child on the payroll, but coupled with all the other clear
lapses in judgment and violation of ethical standards, this week’s
revelations only helped drive a stake into him. Republicans
can’t let this fester into 2006 and the mid-term elections.
–Illegal immigrants pay an estimated $7 billion a year into
Social Security and Medicare.
–Marc Kaufman of the Washington Post had a story on the hefty
tax deductions generated by big-game hunting as long as non-
profit groups agree to accept the trophies as charitable gifts. In
other words, taxpayers are subsidizing the expeditions of fat cats
(the human variety; that is). Talk about a fleecing of America.
Who writes this legislation?! When will we start voting these
jokers out of office?
–Congratulations to the Star-Ledger newspaper for winning a
Pulitzer for its coverage of disgraced New Jersey Governor Jim
McGreevey. Superb journalism.
–John Paul the Great
Pope John Paul II, the man who railed against excessive
materialism, left no possessions. What he did leave us with were
innumerable lessons, foremost being that every human has
dignity and worth. And in his last years he taught us all that
suffering has dignity as well. I for one will always remember the
last time we all saw him, in his apartment window, attempting to
speak while in anguish. It was like Christ on the cross.
Other final thoughts.
Commentator Ralph Peters wrote of October 16, 1978, and the
arrival of John Paul II. “Suddenly it was Christ vs. the Kremlin –
and Jesus had the home-court advantage.”
58 of the 117 cardinals who will vote in the conclave are from
Europe so those of us looking for a new leader from Latin
America or Africa may be disappointed.
No doubt the Catholic Church in America has been struggling
mightily these past few years, so the results of an AP poll
shouldn’t surprise anyone.
By an 86-12 margin we want the next pope to do more to address
the sexual abuse scandal.
By 69-25 we want priests to be able to marry.
By 64-32 we want women to be ordained as priests.
—
President Bush on the death of Pope John Paul II.
“Laura and I join people across the Earth in mourning the
passing of Pope John Paul II. The Catholic Church has lost its
shepherd, the world has lost a champion of human freedom, and
a good and faithful servant of God has been called home.
“Pope John Paul II left the throne of St. Peter in the same way he
ascended to it – as a witness to the dignity of human life. In his
native Poland, that witness launched a democratic revolution that
swept Eastern Europe and changed the course of history.
Throughout the West, John Paul’s witness reminded us of our
obligation to build a culture of life in which the strong protect the
weak. And during the Pope’s final years, his witness was made
even more powerful by his daily courage in the face of illness
and great suffering.
“All Popes belong to the world, but Americans had special
reason to love the man from Krakow. In his visits to our country,
the Pope spoke of our ‘providential’ Constitution, the self-
evident truths about human dignity in our Declaration, and the
‘blessings of liberty’ that follow from them. It is these truths, he
said, that have led people all over the world to look to America
with hope and respect.
“Pope John Paul II was, himself, an inspiration to millions of
Americans, and to so many more throughout the world. We will
always remember the humble, wise and fearless priest who
became one of history’s great moral leaders. We’re grateful to
God for sending such a man, a son of Poland, who became the
Bishop of Rome, and a hero for all the ages.”
Commentator Ruth Gledhill / The Times of London
“The impact of the Pope’s death and funeral would not have been
the same had he died when living out his final months in some
little retirement monastery in the hills around Rome. A retired
Pope on dying would go out with a bit of a whimper, not this
enormous thunderclap that has shaken the world to its spiritual
foundations.
“For a Pope who became a great communicator, his death has
been the best public relations that the Church could ever hope
for. In the wake of this, we can expect conversions throughout
Europe on a scale that even he despaired of ever seeing in his
lifetime, never mind Africa, Asia and the developing world.
“The lesson of this will not be lost on the cardinals. Expect a
resounding silence now in discussions on the resignations of
future Popes.”
Pope John Paul II, speech to the United Nations, October 1995.
“We must not be afraid of the future. We must not be afraid of
man. It is no accident that we are here. Each and every human
person has been created in the ‘image and likeness’ of the One
who is the origin of all that is. We have within us the capacities
for wisdom and virtue. With these gifts, and with the help of
God’s grace, we can build in the next century and the next
millennium a civilization worthy of the human person, a true
culture of freedom. We can and must do so! And in doing so,
we shall see that the tears of this century have prepared the
ground for a new springtime of the human spirit.”
Pope John Paul II, last will and testament.
“As the end of my life approaches I return with my memory to
the beginning, to my parents, to my brother, to the sister (I never
knew because she died before my birth), to the parish in
Wadowice, where I was baptized, to that city I love, to my peers,
friends from elementary school, high school and the university,
up to the time of the occupation when I was a worker, and then in
the parish of Niegowic, then St. Florian’s in Krakow, to the
pastoral ministry of academics…and to Rome…to the people who
were entrusted to me in a special way by the Lord.
“To all I want to say just one thing: ‘May God reward you.’”
It’s now up to us to follow his lead and seize the day.
—
God bless the men and women of our armed forces. We
particularly remember those who perished in the tragic helicopter
crash in Afghanistan.
God bless America.
—
Gold closed at $429
Oil, $53.32
Returns for the week 4/4-4/8
Dow Jones +0.5% [10461]
S&P 500 +0.7% [1181]
S&P MidCap -0.2%
Russell 2000 -0.1%
Nasdaq +0.7% [1999]
Returns for the period 1/1/05-4/8/05
Dow Jones -3.0%
S&P 500 -2.5%
S&P MidCap -1.2%
Russell 2000 -6.3%
Nasdaq -8.1%
I forgot to add the returns for the first quarter last week.
Dow Jones -2.6%
S&P 500 -2.6%
Russell 2000 -5.6%
Nasdaq -8,1%
Bulls 47.9…lowest since Sept. ’04, but not meaningful as yet.
Bears 29.2 [Source: Chartcraft / Investors Intelligence]
Have a great week. I appreciate your support.
Brian Trumbore
