- I was in my car most of the morning listening to Bloomberg. The Exxon Mobil deal was touted as the reason the market is higher. The deal was all stock, which means they are exchanging stock for stock and there is no net effect on the market.
- The Citigroup pricing might not happen until Wednesday. I believe the market will be lower when all is said and done. A$20 billion + offering is huge and will sop up a lot of liquidity. The market does not seem to anticipate anything these days.
- Due to the fact that the Citigroup offering is in the large cap space and we are in the sweet spot for small cap stocks, I believe small caps will outperform over the coming weeks. Longer term I still prefer the large caps.
Back In Business
I am back at my computer and wanted to share the following thoughts: