Friends
Markets had a difficult day today with the slight rally in the dollar producing a selloff in commodities (oil and silver crushed again) and an overlapping selloff in industrial, energy and material stocks. The Dow Jones Industrial Average ended the day down about 130 points giving back the gains of the last couple of days.
We will talk more about the markets on Friday, because today I want to comment on the Raj Rajaratnam verdict. Rajaratnam is the large hedge fund operator who the justice department accused of insider trading. They had an air tight case against Rajaratnam which included taped conversations as a result of wiretaps, and today the jury found him guilty on all 14 accounts. It may not seem like a big deal to some, but in our opinion it is a great development. Individual investors have felt for some time that the stock market is a rigged game, and that the “big guys” get all the inside information. Well, today’s development is the first step in leveling the playing field, and for want of a better term, cleaning up the game. It’s a win for the little guy and a blow to the smug “wall streeters” who think that their money puts them above the law.
We have always said that as a small investment advisor here in Texas, all we ask for is a level playing field. We aren’t asking for any advantages, and we just want to make sure no one else is getting one either. We play by the rules, and just like the individual investor, we just want the rules enforced. Today is a good step towards that happening. Looks like Uncle Sam is listening, those playing outside the rules better beware.
Have a nice evening everyone.
