Worst and Best Trades From 2008
Houghton and Atkeson, January 1, 2009
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4. Merrill Lynch Selling Itself to Bank of America
Bank of America (BAC) bought Merrill Lynch (MER) for $50 billion (price at the time of announcement based on BAC stock value) over the weekend of Sept. 13 (deal announced on Monday, Sept. 15).
During that same weekend, Lehman (LEHMQ) was allowed to fail. Within 45 days, the bulge bracket investment banking industry had been decimated.
Next: Lieutenant Governor Paterson Becomes Governor of New York
More By This Expert
Looking into June, the market should begin refocusing on upcoming earnings reports for evidence the economy is gaining momentum.
Watching the Treasury's Actions
In the short-term, the government's bond auction is likely to be a key driver of stocks.
Treasury Auction Boosts Market
The Treasury's auction of two-year notes brought an upside surprise which should alleviate fears of a lack of demand for U.S. paper.
Credit Markets Point to Upturn
The credit market, a reliable indicator of equity direction, suggests we will break out of the SPX's trading range to the upside.
The market seems to be saying that a 30% move up from the lows is ahead of the real economy and the market needs to allow the economy to catch up.
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