Market Commentary sent to Timer Digest on Friday March 14, 2008
Fari Hamzei
This week, Uncle Ben and Comrade Paulson, with a coordinated attack plan in their back pocket, came in to rescue the Credit Markets, in general, and now we find out, the Bear Stearns & Co. (NYSE: BSC) in particular. BSC is an 85-year old primary broker dealer for the Treasury Bills, Notes and Bonds. All of this ahead of Spring Equinox and Mar OX.
Market smelled blood and went short big time. It is a bleak Friday on both Wall Street and Main Streets. With low Consumer Confidence numbers, record gold and oil prices, and a big investment house having its market cap getting clipped by 50%, the bottoming process is well under way.
Given the most recent market action (near -2 sigma on major indices), we fully expect that The President's Working Group on Financial Markets, better known as PPT, will move in next week and that is the time to hunt for some bargains. Novices better stay on the sidelines till the dust settles.
