Economic/Market Review 11/6/08
Posted by Larry Doyle on November 6th, 2008 9:00 PM |
****I hope that people can access this article which will appear in tomorrow’s WSJ. This piece gives a great recap of the very painful delevering (unwinding investments made with borrowed funds) for Citadel, one of the higher profile hedge funds in the business. — Wall Street Journal
Markets are down another 4-5% on the day and app 10% for the month. Today’s highlights (or lowlights…) being….
1. Goldman Sachs announces that they expect a loss of 300,000 jobs in tomorrow’s employment reports from Dept of Labor. Consensus estimate is that the economy lost 200-250,000 jobs. Markets are very nervous that this number will be even worse but regardless the overall rate is headed well north of 7%…
2. Cisco announced after yesterday’s market close that they had their first revenue decline in 5 years…
3. Blackstone (one of the largest private equity funds in the business) is down app 15% on negative earnings report and negative outlook…
4. Now for the good news…Wal-Mart has positive earnings and outlook for holiday season…this is a recession play …
Economic/Market Highlights 11/5….Biggest Post Election Slump in History!!
Posted by Larry Doyle on November 6th, 2008 7:00 AM |
Today’s 5-6% market selloff is the biggest post-election slump in history. If you think the markets aren’t nervous enough already, the prospects of a Democratic Congress and White House added fuel to the fire.
I fully appreciate that the campaign and election captivated our hearts and minds and souls over the last days, weeks, and months. To that end I refrained recently from regular economic/market posts so as not to distract from the main focus. Against that backdrop, though, we all have bills to pay so back to work we go.
Our economy remains mired in a slump that I expect to only get worse over the next few quarters.
–Jamie Dimon, the CEO of JP Morgan cautioned employees in Hong Kong that he does not foresee an economic recovery until 2010. JPM is currently the strongest banking institution in our country and has business in virtually every sector of commercial and investment banking. Dimon is sending a message to not only employees but even moreso to shareholders as to what he expects. We should all heed what he says.
–Dallas Fed governor said that he does not expect to see a positive GDP report until 2010. (more…)
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