MARKET COMMENT
November 16, 2006
Milton Friedman
Nobel Prize-winner economist Milton Friedman died last night
at the age of 94. As a young man I had
the distinct honor of knowing him briefly in 1972 while he was on sabbatical in
Honolulu. He was kind enough to share his thoughts with
and answer some questions from me on two separate memorable occasions. Thereafter, I continued to be impressed by his
principled and consistent approach to economics, politics and the human
condition. Today, more than ever, those steadfast
characteristics will be missed.
Markets today featured some interesting action as major US indexes
scored gains while market internal action was mixed.
Energy markets were lower today led by high natural gas
supply data.
Gold markets lower all week.
Copper prices lower this week with another test of $3.00
looming. End-users must be making
adjustments and/or signs of economic weakness.
[Note: StockCharts doesn’t provide appropriate data for copper contracts.]
Treasury bond prices lower despite lower inflation data from
the CPI [Consumer Price Index] as foreign money-flow to US assets were lower.
Commodity-based indexes [which include many extended Emerging
Markets] were notable laggards with many closing on session lows.
Options for November expire tomorrow and lately these events
have been relatively unremarkable.
Overbought Emerging Markets needed to correct and today many did—sort of. Maybe it’s time for them to finally take a
rest. It’s always more fun to turn on
the quote machine everyday and see your stock or ETF going in the right
direction isn’t it? This can’t happen all
the time.
Have a pleasant evening!
Disclaimer: The ETF
Digest maintains positions in: SPY, QQQQ, GLD, IEF, PBW, IFN, ILF, EEM and TRF.