MARKET COMMENT
November 29, 2006
Today may have been just another occasion for end-of-month
window dressing. Oh, but that’s not
allowed anymore is it? Well, let’s not
be too naïve. There’s nearly $2T in
hedge fund money sloshing about and good performance matters each and every
month, so…
Aside from that, what’s the buzz? The Beige Book shows moderate growth and GDP
was revised somewhat higher. Everything’s
just fine. Put Monday’s decline out of
your mind like it never happened.
The only problem may be on Friday since it’s the beginning
of a new month and some bad actors [Bernanke speaks
again] could make the weekend uncomfortable.
Wait, there’s still the problem with the dollar, precious
metals and energy isn’t there?
Let’s look at some of the other “usual suspects”:
Higher risk markets have higher Beta’s [volatility] so
two-way action can be more rewarding on up days and destructive on down
days. Some featured players in this
regard include:
Okay, enough already.
It’s just Wednesday, maybe “Big Wednesday”! But, we’re just as anxious with conditions as
anyone—but that’s always true. As stated
previously, “patience” will be the watchword throughout the week as more “talk”
from officialdom may continue to move markets.
Have a pleasant evening!
Disclaimer: Among
others, The ETF Digest maintains positions in:
SPY, FXE, GLD, CEF, IEF, EEM, ILF, FXI, TRF, EWA, EWC, EWM, and IFN.