Is the bottom in?
It seems most of the market participants believe the bottom is in on the equity, with the Dow, S&P and Nasdaq way above the minimum of March after a 7 week (bear) Rally. I am not so convinced and therefore stay almost fully cash waiting for the true bottom to be in. If I am [...]
S&P below 1,000
Just a quick update on the bet I made with a friend of mine I hinted to a few blogs ago. I was giving the S&P 12 months to touch 1,000 (at the time I made the bet, the S&P was trading around 1,300), and it just touched it yesterday, closing at 996. I’ll collect [...]
Meltdown Monday
It was another black Monday for Wall Street after the Congress hasn’t passed the mother of all bailouts. I will skip the details, as the whole press world is doing already a very good job at covering what’s happening.
Just one quick point. The Dow closed at the very bottom, lacking the support of the short [...]
The big rush for cash
A recent Citi estimation talks of 600bn$ of cash being hoarded up by hedge funds. Not a surprise. The fly to safe lands (cash) coupled with deleveraging was already happening, and it looks like it is assuming epic dimension right now. Not a suprise, considering the following gib question marks:
the 700bn$ bailout is facing challenges. [...]
The 1.8 trillion dollars bailout
CNBC has made an interesting analysis on the US government bailout of the financial crisis.
It’s not just 700bn$, more like 1.8trn$. Quick laundry list:
700bn$ recently announced plan to buy assets from bank
150bn$ MBS purchase by Fannie and Freddie
85bn$ for AIG
90bn$ in repayment to JPM for Lehman
200bn$ for Freddie and Fannie
300bn$ for FHA
200bn$ of currently outstanding [...]