Seeking Alpha
, ETF Digest (208 clicks)
Newsletter provider, portfolio strategy, ETF investing
Profile| Send Message|
( followers)

While "Da Boyz" are away spending some their $24B in bonus money they've no doubt left a few junior troops on watch to protect their positions through the end of the year. Now you think I'm sour about all this right? Well, yeah!

The firms that constitute "Da Boyz" network [Goldman Sachs Group Inc. (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup Inc. (NYSE:C), JPMorgan & Chase Co. (NYSE:JPM), Bear Stearns Companies Inc. (NYSE:BSC) and so forth] are publicly traded companies. Notorious hedge fund managers can make a lot of money as well, but the difference is that investors in those funds hope and expect the fund managers to make big bonuses. They know it going in. Many investors were shocked by the $40M bonus MS's Mack earned this year and GS chief Blankfein topped that today with $54M. One of the disturbing things is that GS isn't paying any significant dividends to shareholders. Sure, the stock has appreciated substantially, but why not share the wealth with your shareholders?

Not only have Da Boyz left some reserve troops on duty, but their allies at the Treasury and Fed have chipped in again over the past two days to keep things humming thru New Years. [Please note: All funds loaned "below" the prevailing Fed Funds rate -- you'd take that wouldn't you?]

D Fry Market Outlook 21 12 2006_001

D Fry Market Outlook 21 12 2006_002

Well, it's good to be one of the 22 Primary Dealers right?

Things are starting to wind down and volume is tailing off. Barring any market-moving news indices should remain fairly well-pegged thru the holidays.

D Fry Market Outlook 21 12 2006_003

D Fry Market Outlook 21 12 2006_004

D Fry Market Outlook 21 12 2006_005

D Fry Market Outlook 21 12 2006_006

But there is good news for the little guys out there today as dividends start hitting some ETFs causing the sudden price fluctuations we suggested would occur. I do not have the data exactly yet, but you could see price drops in iShares MSCI Australia Index (NYSEARCA:EWA), iShares MSCI Malaysia Index (NYSEARCA:EWM), iShares MSCI Emerging Markets ETF (NYSEARCA:EEM) for example, while Yahoo/Finance was reporting them higher on the day after adjusting for dividends. Expect more of this type of action throughout the next 10 days.

D Fry Market Outlook 21 12 2006_007

D Fry Market Outlook 21 12 2006_008

D Fry Market Outlook 21 12 2006_009

Elsewhere, commodity and currency markets were, with the notable exception of copper [which broke support at $3], fairly steady.

D Fry Market Outlook 21 12 2006_010

D Fry Market Outlook 21 12 2006_011

D Fry Market Outlook 21 12 2006_012

D Fry Market Outlook 21 12 2006_013

D Fry Market Outlook 21 12 2006_014

D Fry Market Outlook 21 12 2006_015

D Fry Market Outlook 21 12 2006_016

Tomorrow is Thursday and our commentaries will slow down to intermittent postings. But we'll be watching like the privates in the foxhole above.

Disclaimer: Among other issues, ETF Digest maintains positions in: S&P 500 Index (NYSEARCA:SPY), MidCap SPDRs ETF (NYSEARCA:MDY), PowerShares Zacks Small Cap (PZJ), iShares MSCI Australia Index (EWA), iShares MSCI Malaysia Index (EWM), iShares MSCI Emerging Markets ETF (EEM), streetTRACKS Gold Trust ETF (NYSEARCA:GLD), iShares Lehman 7-10 Yr Treasury Bond ETF (NYSEARCA:IEF), United States Oil Fund ETF (NYSEARCA:USO), PowerShares DB Commodity Index Tracker (NYSEARCA:DBC) and Templeton Russia & Eastern Europe Fund CEF (NYSE:TRF).

Source: David Fry's Daily Market Outlook