Tag Archives: BRK
What’s he trying to tell us? On Tuesday, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A or B) announced it will buy PacifiCorp, an electric utility serving six western states, for $5.1 billion in cash and $4.3 billion of assumed debt and preferred stock.
It’s hard to put the conclusion more simply than that. The stock market has tried valiantly to bounce off the April 23 low. So far, though, the rally hasn’t gained any real traction. There’s “no momentum.”
You can see the problem in the 10-day rate of change for the Standard & Poor’s 500 index. This momentum gauge has made a series of four declining peaks since February.
A lot of folks seem to be blowing their cool in the debate over the reinsurance “scandal” at American International Group (NYSE: AIG). Not least the rating agencies. Fitch, the quickest jackrabbit out of the box, downgraded the giant insurer to AA+ (still the agency’s second-highest rank) after AIG’s board kicked CEO Hank Greenberg upstairs as “nonexecutive chairman” and forced CFO Howard I. Smith to go on “leave.”
Stocks keep wallowing around near their lows for the month (and the New Year). Don’t despair, though. The picture isn’t as bleak as it looks. For one thing, the sellers haven’t been able to build much momentum. Usually, when the indexes are about to slide off a cliff, the market tips its hand.