It's official! Transportation and utilities don't matter! According to Cramer:
"What are we playing here, Monopoly? Last I looked that's about the only place the (*&%(*$*&$ rails really mattered.....Yeah, I hear in the background that people are shaking their heads over the Transports. Last week it was the Utilities. Boy, I hate to smash a few idols here, but do we really think, when AOL is among the 10 largest companies in the country, that we should be bound by the action in Norfolk Southern (NSC:NYSE)? Hasn't the world changed enough in our faces that we should care more about the DOT than the Transports? Is this too outlandish, too unrigorous? Or is it just a way to make money?"
Here is some "really rigorous" analysis:
"Let me be a real iconoclast for a second. Excuse me, but maybe if the Transports are going up that's actually bad for the New Market. Walk though this one with me. What Greenspan really fears is a reignition of inflation. What would show us that? Why, an increase in airline, truck fares and train fares, of course. If the Transports are flying, maybe that means the Fed would tighten. If the Fed tightens, the New Market goes down, not up!!! Heck, there's the logic behind the market. That's the really rigorous view."
Iconoclast? Transports up...bad. Inuts up...good. Only a few tens of millions of people are hopping to that rigorous beat.
The e-Bunny is special.
/Kit
P.S. I bet he is hearing from some of his more sensible colleagues that the market is in dangerous waters, and these are his efforts to rationalize (if you can call it that) ignoring common sense. |
