That Was The Week That Was-3rd Week August

•   Last Monday markets were mixed with the Dow off 1 and the NASDAQ +8 and the stock market continued 5 days of losses. Hey, anyone want to play number 185? Box it, straight? Maybe we can make money that way…
• If I reported James J. Kilpatrick, arch conservative passed away a week ago, most Boomers wouldn’t know who I was talking about. If I reminded you, dear reader, that he and Shana Alexander were the first closers on 60 Minutes (they did Point-Counterpoint); or, that Dan Ackroyd and Jane Curtin imitated them on Saturday Night Live, ahh – now you know.
• Banks loosen lending standards but no takers.  Fewer credit worthy companies are looking for loans and competition is aggressive for their business, according to Bank of America exec Kathie Sowa.
• Oil and stocks now moving in tandem. (sigh)
• Markets moved higher Tuesday because…they were due!! The Street had some reasons for the triple digit move up and Morningstar Mid-Day had others. Wal-Mart announced a 3.6% rise in earnings. Reynolds Group buys Hefty bag maker Pactiv (betcha you didn’t know that). Producer prices also increased giving traders some relief from nightmares of deflation.
• It’s the fertilizer wars as mining giant BHP Billton went after Canadian potash provider Potash Corp and was robustly rebuked. BHP said it’s taking its offer to shareholders. All fertilizer firms rose on the news.
• In Michigan attendees to the Labor Day festival in Royal Oak will be allowed to saunter the boulevards packing heat. Organizers from Michigan Open Carry have won the right to wear their six-shooters proudly. ‘Draw, Deadeye!’  Common sense has finally left Michigan.
• Billionaire Stanley Druckenmiller calls it quits and closes his 12 billion dollar hedge fund. He is down about 5% so far this year.
• Barnes & Noble putting itself on the market. Bookstore may close its doors forever because it never did get the 21st century.
• Frightening essay by Minyanville’s founder Todd Harrison on why Druckenmiller and other hedge fund gazillionaires are pulling the plug and getting out of the business. They see no future for making money in the next 3-5 years, according to Harrison, and want no part of what’s coming. He sees no solution in an uncertain world. (see my blog on the Omen).
• Thursday markets fell snapping a 2 day winning streak. The DJIA off 144 points, off its lows of the day. It was all about (Surprise!) jobs. What the hell do traders think is happening all across the fruited plain? Profits up, M&A starting to gear up, Intel snaps up McAfee (for no other reason, it would seem, because Intel has cash up the kazoo). Intel, by the by, fell 3.9% while McAfee soared 57%.
• Dick Del Bello, senior partner at Conifer Group said Thursday, “ We’re in this tunnel that is not letting anybody feel good about where the economy is headed long-term.”  Leadership, Dickey, it’s all about the abysmal lack of leadership, confidence and trust.
• Lots of healthy M&A which usually leads the markets: sigh…

• Arguments swirl whether stronger bonds favor one economic scenario or another. Is it inflation or deflation? Brian Kelly founder of Kanundrum Capital said, ‘This is about capital preservation as baby boomers approaching retirement want to protect what is left of their nest egg.’

If you have questions call Paul @ 877 783 7080 or write him at pstanley@westminsterfinancial.com. Share this blog with someone who cares about their money.