Wednesday's Outlook: The 'In Crowd'

The in crowd?

I was thinking about this after reading the morning news Tuesday. Paulson & Co. gets Greenspan as an advisor for its hedge fund business and he’s an “in crowd” kind of guy right? Of course he might have some [ahem] residual information flows and contacts at the Fed but then with unregulated hedge funds, who’s to worry?

How about those potentates around the globe with copious amounts of funds in SWFs to bail out stupid U.S. financial institutions like Citigroup (C) and Merrill Lynch (MER)? It’s a long list of “in crowd” club members no doubt.

So, Monday’s rally is quickly snuffed out by an even larger decline, sparing pain in few sectors including the recently hot gold sector. Much will be made that the major indexes took out previous lows but, my friend Harvey [photo below] reminds me the week’s not over.

Go to part 2 »

Disclosure: Among other issues the ETF Digest maintains long or short positions in IEF, SH, SDS, MYY, RWM, TWM, PSQ, GLD, GDX, DBA, IYR, EFA, EFZ, EWW, EWD, EWJ, EWV and RSX.