-----Original Message-----
From: Greg Simmons [mailto:GSimmons@rothcp.com]
Sent: September 16, 2004 18:24
To: Greg Simmons
Subject: "MARKET UPDATE"
SEPTEMBER 16 2004
THE SPX CLOSED UP 3.13 @ 1123.50
THE VIX CLOSED DOWN .25 @ 14.39
WHERE THE TECH STOCKS MADE UP THE LIONS SHARE OF THE SPX MARKET CAP DURING THE BULL MARKET, THE FINANCIALS/BANKS ARE NOW THE BIG PLAYERS DURING THIS BEAR MARKET RALLY.
I FEEL THAT, WITH THE INTEREST RATES AT BASICALLY 50 YEAR LOWS, THE BANKS HAVE MADE TONS OF MONEY ON THE SPREADS PROPPING UP THEIR STOCKS TO VERY HIGH LEVELS.
THE THING THAT IS FUNNY TO ME IS THAT, EVEN THOUGH THE BANKS HAVE HAD THIS HUGE ADVANCE, PEOPLE/ THE "BULL" CAMP SUGGEST THAT HIGHER RATES WILL MEAN GREATER PROFITS FOR THE BANKS ??? I AM CONFUSED AND OR NOT VERY SMART I GUESS... HOW CAN LOWER RATES MAKE THEM TONS OF MONIES AND HIGHER RATES MAKE THEM MORE?
I HONESTLY DON'T GET IT!
I DO KNOW THAT IF THE BANKS FADE HERE ON HIGHER RATES IT WOULD SPELL BIG TROUBLE FOR THE MARKETS BASED ON THE SIZE OF THEIR MARKET CAPS.
-G
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