As far as stocks are concerned, bigger is better. Giant deals and rumors of more deals by giant players continue to drive big-caps higher. For us little people, if we're invested with them, it's fun and profitable.
Speaking of giants, Berkshire-Hathaway (NYSE:BRK.A) held its annual meeting over the weekend. Buffett wasn't too worried about subprime mortgages and isn't fond of many short-term trading regimes dominating Wall Street -- calling the latter a "fool's game." I assume he's referring to program trading. Since he's a long-term investor, he scoffs at strategies that diverge from his specialty. But hey, it's good to be a primary dealer and trade the hell out of the market with random-but-consistent injections from the Fed and the Treasury.
He also implied he was going to take $40 billion in cash and invest it overseas. Join the party please!
There really isn't too much to add, as we'll have a "deal dependent" and "data dependent" week. Between the Fed meeting Wednesday [another Big Wednesday?], Trade Deficit data Thursday, and PPI and Retail Sales data on Friday, the second half of the week should offer plenty of fireworks.
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