It's a travel day for Money McBags so we'll get to the market news early. The big story which should give pause to the market (and by pause, I mean send it into a bit of a downward hissy fit like someone at Fox News after trying to spell USA without a teleprompter) is that China is raising their bank reserve requirement once again in order to put a damper on growth. China has been fueling the global recovery as they not only provide cheap, flimsy, and lead ridden goods for the world, but they are growing internally faster than a metastasizing anal fissure. This is the second time in month China is raising this reserve rate in their attempt to show the world that they are not fucking around and will try to avoid Greenspan's folly.
Also likely to send the market down today is Europe's recovery being more stagnant than Demond Wilson's acting career. GDP rose .1% in Europe which was only slightly below the .3% estimate but traders will likely overreact because volatilty to them is like spinach to Popeye or like Amanda Seyfried to Money McBag's "popping eye" (and yes that is a very bad euphemism, but you get for what you pay). This slow down in Europe's economy could not come at a worse time as markets are still trying to figure out when/how the EU intends to bail out Greece. It's like the EU has hired the underpants gnomes to solve the potential debt crisis. Step 1: Hint that you will bail out Greece. Step 3: Recover. Unfortunately, those people with actual working cerebral cortexes (Which rules out the delightful Carrie Prejean and the guy who invented Nuts 'n Gum) understand that there has to be a more substanial plan (and as an aside is the plural of cortex, cortexes or corti? Can someone exhume William Safire and get a ruling on this? Money McBags is not always a cunning linguist). Money McBags is sure that the EU will come to Greece's aid, because the Euro is not going anywhere, so until then, traders will just have their fun by continuing to bring volatility to the market.
There's not a lot of stock news yet but Berkshire Hathaway will be entering the S&P 500 today which should nudge it up a bit higher and maybe even cause Warren Buffet to take off his trifocals, pull up his breeches, tighten his cravat and gingerly smile before going back to his game of whist. In small caps, EHTH announced their quarter and revenue was a bit light on application growth struggles. EHTH is an interesting name in that they provide a network for people who do not have employee sponsored health care to get health insurance. The company should be booming right now with so many people signing up for Cobra that GI Joe may get slaughtered (and yes, that was an unfunny and terrible joke). EHTH has had a solid balance sheet, great ROEs, and a terrific business model, but Money McBags is a bit confused as to why they haven't been able to see stronger growth and if they are not booming in this environment, when will they? Money McBags has not had a chance to go through their quarter yet or listen to their call, but will be surprised if they don't sell off today.
Enjoy the weekend.
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