Bulls Took Advantage of Moment of Silence :-)

Discussion in 'Trading' started by yeayo, Nov 11, 2005.

  1. yeayo


    The Wall Street guys sure are desperate for big bonuses.
  2. Yeah, sometimes lately it seems like the market action is based on an attitude of "we'll defend those bids because we DESERVE a year-end bonus rally, by God!"

    This too shall pass and the market will do whatever the market will do regardless of what anyone says, including me. But I think we'd all be better off in the long run economically and marketwise if we didn't get an artifical rally that set stocks up for a big plunge in the first quarter of '06.

  3. Bonuses for what, the Dow is in the same place it was last November.
  4. All the more reason to press. There's a big difference in bonuses between +5% S&P and -5% S&P.
  5. A one year CD almost yields that. As a matter of fact CDs have out performed the makets.
  6. True enough, but not necessarily germane to the topic at hand.

    There are a lot of people on institutional trading desks talking to their compadres at mutual funds and various money managers and they're all getting a little sweaty hoping for a Merry Xmas. They're in a large industry (where the main overhead is payroll) that makes a hell of a lot more money in up markets as compared to down and that makes payroll and bonus decisions accordingly. I've been in that hot seat before and it's not pleasant.
  7. 5% is below average, 7-8% is average, 10-12 is a good year, and should demand good bonuses, thats my opinion. why should money managers get fat bonuses for average returns. All said the year is not over.
  8. Well...I'm not talking "should," I'm talking "will." :D

    If the S&P and most managers are negative 5% on 12/31 they will receive significantly less money when bonused than they would if they're up even 5%.

    And, depending on the particular firm and its circumstances, down 5% means some people are going to get s&%tcanned in January.