FED SETS FIVE-DAY REPOS, ACCEPTS $11.75B…..Will this ever end?
Merrill-Lynch raises Mexico’s GDP forecast from 2.3% to 2.5%….Would love to see the convoluted fantasy land these guys live in. I forecast Mexico’s true GDP to be near 0% for 2008. Let’s see who’s closer come year end.
April Existing Home sales came in at 4.89 Million versus the prior sales of 4.93 Million. Still slowing down.
This is "moral hazard" evidence, as far as I’m concerned….shame on Bill Gross:
FIXED INCOME: PIMCO’S GROSS HAS ALMOST TRIPLED HIS HOLDINGS OF MORTGAGE DEBT TO MORE THAN 60% OF HIS FUND - FT
- The Pimco Total Return fund has $130B of assets
- Gross said he has decided to invest more in mortgage debt due to the US government’s implicit guarantee of Freddie Mac and Fannie Mae.
- Gross said Pimco was mostly mortgage agency debt.
8 Comments
May 23rd, 2008 at 10:54 am
I don’t get it when people think mexico will disconnect… mex is manufacturing and commodities, owned by less than 5% of the country. Mexico produces NOTHING but parts and immigrants and mangos, 80% of which go to the US. How is that a basis for continued strength in light of the US’ looming disaster?!?!
May 23rd, 2008 at 11:14 am
Yep, like I said, Merrill Lynch is out to lunch on this one. The only “disconnect” I’ve been seeing is between analysts’ brain cells and reality.
May 23rd, 2008 at 11:43 am
If oil closes below yesterday’s close, will the market in general and the xlf go up?
May 23rd, 2008 at 11:47 am
Any theories on how much affect CNBC has on the market?
May 23rd, 2008 at 11:58 am
I don’t think oil’s close below yesterday’s close will move the market in a positive direction. CNBC has very short term effects on selected stocks, but only because retail buys or sells on their crap. Smarter traders use them as a short term contrary indicator only. CNBC has no effect on broader market movements.
May 23rd, 2008 at 12:11 pm
Thanks Lisa. Any idea on how much of the daily volume lately is retail?
May 23rd, 2008 at 12:23 pm
No way to know really. Unfortunately, I’d say most of the retail money has been to the upside, though.
May 23rd, 2008 at 12:28 pm
A classic example of CNBC pump is C. They push it quite a bit on Fast Money and it ALWAYS gets some pop the next day. They had Richard “buy of a generation” Bove on the other day and he was pushing this basically insolvent institution as a double in a couple of years. The next day C popped 33% to LEAD the Dow. Ya’ can dress a pig up but it will still oink.