MARKET COMMENT
May 7, 2007
As far as stocks are concerned, “bigger is better”.
Giant deals and rumors of more by giant
players continue to drive big-caps higher.
For us little people, if we’re invested with them its fun and profitable.
Speaking of giants, Berkshire-Hathaway held its annual
meeting over the weekend.
Buffet wasn’t
too worried about subprime mortgages and isn’t fond
of many short-term trading regimes dominating Wall Street calling the latter a “fool’s
game”.
I assume he’s referring to
program trading.
Since he’s a long-term
investor he scoffs at those strategies away from his specialty.
But, hey, it’s good to be a primary dealer
and trade the hell out of the market with random consistent injections
from the Fed and Treasury.
Further, His Wizardry implied he was going to take his $40
billion in cash and invest it overseas.
Join the party please!
There really isn’t too much to add as we’ll have a “deal
dependent” and “data dependent” week.
Between the Fed meeting Wednesday [another Big Wednesday?], Trade
Deficit data Thursday and PPI and Retail Sales data on Friday, the second half
of the week should offer plenty of fireworks.
Have a pleasant evening.
Disclaimer:
Among
other issues, the ETF Digest maintains long or short positions in:
SPY, MDY, IWM, QQQQ, FDN, UDN, GLD, GDX, DBP,
DBC, EFA and EEM.