Wednesday, September 21, 2005

Markets down after another 25 bps rate hike

The markets lost another 80 odd points today, after having lost 100 yesterday. The indices had been in the positive till Fed came out with its statement at 2:15 pm. While investors had been prepared for a 25 bps hike, I guess they were expecting some signs that the Fed would halt its tightening campaign soon. That did not happen, and the market tanked.

There is no shortage of jokers in financial markets. One of them is the CEO and chairman of Overstock.com - Patrick Bryne. In the last few months, he has used terms like Al Qaeeda, terrorists, druggists, addicts, school kids in a bus et. al to describe the short sellers that are killing his stock. See Jeff Mathews blog for more on Overstock: http://jeffmatthewsisnotmakingthisup.blogspot.com/2005/09/is-there-disclosure-issue-here.html

Equally hilarious is Steve Ballmer's interview in Businessweek: http://www.businessweek.com/magazine/content/05_39/b3952008.htm. The magnitude of management jargon sprout in this interview defies logic. I counted innovation mentioned 24 times - now that is a quality which consumers stopped associating with Microsoft after it came out with Windows 95. Earlier, I used to think that this is a very attractive utility stock for someone seeking to retire and get a nice dividend payout. Now, I think that Microsoft is in serious trouble, unless Bill Gates fires Steve Ballmer in the next couple of years, and bring in someone who can make the stock run. MSFT has remained flat in the last five years..

2 comments:

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