Call me crazy, but I am loving these new Basel III regulatory measures! I’d been worried that the financial-services companies in my portfolio would have to slow business down a lot to achieve acceptable capital ratios, but not to worry! Those wooly restrictions won’t kick in for another couple years, and the required capital-raises stretch out over the course of a decade. In the short term, Wall Street hardly has to bat an eye.
Given the softball restrictions, it shouldn’t surprise anyone that my financial stocks had a great day: American Express (AXP) up 2.6 percent; Bank of America (BAC) up 3 percent; JP Morgan Chase (JPM) up 3.4 percent; Travelers (TRV) up 0.8 percent! Gangbusters!
And as hot as the financials were, tech was exploding! Cisco (CSCO) up 3.1 percent; Hewlett-Packard (HPQ) up 0.2 percent; Intel (INTC) up 3.3 percent, and Microsoft (MSFT) absolutely murdering it with a 5.3 percent gain! Not sure, but maybe this Barron’s article had something to do with the tech frenzy.
Needless to say, I’m ecstatic, finishing today up 81 points, which is 0.8 percent! Things were even hotter for the Nasdaq — 1.9 percent gain — but basically across the board stocks were doing well, and that’s reason to cheer, right?
Well that’s not all. Warren Buffett, the cute old man who’s worth billions, said he’s pretty sure we don’t have to worry about a double-dip recession.
Also, regulators are starting to go after the sort of monstrous computer traders that may have been behind the May 6 flash crash. And I gotta like that. I’m not into being manipulated by rogue robot hedge funds.
Anyway, after a day like today, I feel pretty good about heading home and kicking it with a six pack and pizza for Jets-Ravens. Can’t wait to get going again tomorrow! Up 5.3 percent so far this month, 1.1 percent year to date. You hear that sound?! That’s the bulls a-chargin’!
See you soon,
The Dow Jones Industrial Average