GREEN AND PEACENIKS-UNKEMPT

MY WIFE AND I FOLLOWED OUR NEWEST 4TH OF JULY TRADITION OF ATTENDING THE PARADE IN BATH, MAINE. THIS BEING AN ELECTION YEAR, BOTH NATIONAL PARTIES WERE WELL REPRESENTED. IT WAS AMUSING TO HEAR THE ONLOOKERS HECKLING THE REPUBLICANS WITH COMMENTS LIKE “GOOD LUCK IN NOVEMBER” AND SUCH. OF NOTE, THE REPUBLICANS WERE GENERALLY BETTER GROOMED THAN THE DEMOCRATS.

WE WERE SITTING NEXT TO A YOUNG COUPLE AND IN PASSING CONVERSATION WE FOUND THAT THE HUSBAND WAS PERMANENT CADRE IN THE MAINE NATIONAL GUARD. HIS COMMISSION WAS FIELD ARTILLERY (INFERIOR TO AN INFANTRY MOS) BUT TO HIS CREDIT HE HAD ATTENDED JUMP SCHOOL AT FORT BENNING AND BEING A PARATROOPER MADE HIM IN MY EYES.

WHILE WE PROBABLY WERE AT OPPOSITE ENDS OF THE SPECTRUM RELATIVE TO OUR CURRENT WAR, WE WERE BOTH STRUCK BY TWO OF THE GROUPS MARCHING (AND I USE THE WORD LOOSELY). THE FIRST WAS A  LARGE GROUP OF NAVAL AVIATORS UNDOUBTEDLY FROM THE BRUNSWICK NAVAL AIR STATION. WHILE LOOKING SHARP IN THEIR UNIFORMS, THEY MEANDERED UP THE STREET IN NO PARTICULAR ORDER. WE BOTH COMMENTED THAT WE JUDGED SUCH GROUPS BY THEIR ABILITY TO MARCH IN STEP.

FOLLOWING SEVERAL GROUPS BEHIND WAS A MID SIZED GROUP CARRYING SIGNS SUPPORTING ALL THINGS GREEN AND FOR THE BETTERMENT OF THE ENVIRONMENT. INTERSPERSED IN THIS GROUP WERE MEMBERS CARRYING ANTI-WAR SIGNS,BAN THE BOMB ETC. THE NATIONAL GUARD OFFICER AND I BOTH COMMENTED ON THE ‘60′S LIKE LOOK OF THIS GROUP. LONG HAIR, BEARDS AND THE GENERAL LOOK OF A DISHEVELED MOB. THE COMMENTS OF THE ONLOOKERS WERE MILDLY CAUSTIC. 

WHY IS IT THAT SUCH IMPORTANT ISSUES AS OUR ENVIRONMENT AND THE IRAQ WAR PROTESTS ATTRACT PEOPLE WHO SEEM TO BE ON THE FRINGE. WHERE ARE THE LAWYERS AND BUSINESS PEOPLE IN THEIR SUITS? OR ARE WE JUST TOO AFRAID OR TOO LAZY TO MARCH AND TO SHOW OUR TRUE FEELINGS?

Reflections on Viet Nam versus Iraq

On June 14th, I was asked to host the breakfast at the American Stock Exchange celebrating Flag Day and the 233rd Birthday of the United States Army.  I was once again surprised by how few of my generation had served. There are only roughly 15 veterans of any of the services in an exchange population of almost 1000.

During the course of the breakfast and the roughly two hour visit, I was struck by the fact that there was a tremendous difference between how the current members of the Army and other services are being treated compared to my service time in the late sixties. As the Army representatives walked around the floor, they were cheered and thanked profusely for their service. Many members of the Exchange stopped trading in order to shake hands with the Army contingent. When I mentioned the warm response to the Lieutenant Colonel and the Command Sergeant Major, they both commented that the same thing happens in airports and even on the streets> While both were warmed by the welcome, they both expressed some embarassment. The command Sergeant Major had joined at the end of the Viet Nam Conflict and remembered how different those times were.

I related my experience returning home in 1969. Upon release from the Army in late May, I caught a plane from Seattle Tacoma Airport to Boston. My wife was about to graduate from Mt Holyoke College where she had finished her senior year while I was overseas. I was dressed in uniform with the bloused boots and Overseas Cap(known by another name) typical of US Army Airborne. Upon arrival on the Mount Holyoke Campus, I found my wife’s dorm. Walking up the front steps I encountered two young ladies. They proceeded to spit on me and call me a pig.

Whether one agrees with either the Viet Nam War or the present War in Iraq (and I don’t particularly agree with either), I am more than pleased that the bulk of the American population are supportive of those who serve. During the Viet  Nam Era a large portion of those who served were conscripted. While I volunteered, those who were drafted didn’t deserve the abuse they took. They were simply doing their duty. The present military are mostly volunteers (the National Guard might be seen as reluctant volunteers ) and deserve our unqualified support.

Thank you to all who serve and thank you the American public who support them openly regardless of you view of the Iraq War. We are better for your support.

Municipal ETFs

There has been an uptick in the volumes of the various Muni ETFs that have been issued by Barclays, SSGA., Powershares and Van Eck.

Of note yesterday were the 96,300 shares of MUB(Barclays natiional product) and the 201,000 shares of TFI(State Street national product). PZA from Powershares was third in share volume with 10,700 shares. All 12 existing Muni ETFs had some share volume.

There has been a flurry of late in the year launch announcements from several issuers. The timing is difficult as most specialists are trying to close out the year and are generally reluctant to take on new product with little chance of substantial sales until the New Year.  

December Calendar

Finally the new launch calendar seems to be lightening up a bit.  Barclays will launch a handful of products, SSGA only one or two, Van Eck one Muni product Vanguard-1Victoria Bay -1 and a smattering of others but definitely lighter than October/November. Hopefully this will give the market some time to absorb the recent spate of new issues. 

FXP/Fast seller

The launch of ProShares double down Japan and China ETFs went better than well. Japan(symbol EWC) had volume of 36,400 shares-a reasonable start. China (symbol FXP) had exceptional volume of 528,400 shares for one of, if not the best launch in recent memory. At least 3 additional units were created jumping the initial AUM from $10.5 million to an end of day $26 million. We believe that ProShares timing was opportune in that recent volatility and the possibility that China might be a bubble, will help it sell well. Given that the product has been a long time in the planning, it is unlikely that ProShares was attempting to cherry pick.

Sub Prime Anecdotal

My commute  always includes the Path ride from New Jersey into the World Trade Center station in downtown NYC. Typically at the top of the exit stairs there are shills(advertisers) passing out leaflets/flyers to those entering and leaving the station. The last two days there have been two young ladies passing out red cards during both the morning and evening rush hours. The normal pattern is for commuters to take a handout, glance at it and drop it a few feet farther on. The sidewalk is normally littered with discards.

Last night I managed to get a seat on the train (barely beat a pregnant lady out for the last spot-only a little hip action). A woman standing in front of me caught my eye. She was carefully reading one of the red handouts. Several more people boarded the train and I noticed that they were also carrying and reading the red cards. By reading over a shoulder I determined that the cards were offering loans at a discount-second mortgages or whatever-the fact that people were reading them carefully brought home just how deep the problem probably is. Anecdotal I know but…

Muni ETFS 10/10/2007

Decent volume in both National Products today. MUB from Barclays showed volume of 15,600 shares and TFI from State Street registered 58,000 shares. Both Barclays State name ETFs-Calif and NY showed less volume but given their infancy that is to be expected. The game gets muddier tomorrow with the launch of three Powershares products. They are PZA, PZT and PWZ. All are insured products representing a National product plus Calif and NY. early indication is that there is building interest in these products. Van Eck is still scheduled for their Muni products in late October to early November.

Municipal ETFs Day 3.

And a better day again. Trading volume 63,300 shares. The second test of this new crop of ETFs starts tomorrow with the SSGA National Municipal Bond ETF trading as TFI on the Amex. With MUB priced at $100 and TFI priced at $20 it will be of interest to see if the lower priced product attracts a different clientele.

Municipal Bond ETF Day 2

MUB sold very well today with volume on the Amex of 43,500 shares. It will be interesting to see how the SSGA product, TFI will do when it launches on Thursday. If both sell well it would bode well for the 16 municipal ETFs that follow. Note the difference in structure between the Barclays and State Street Products. Of note is the structure of the coming VanEck product. By all accounts a different and neat structure.

MUB Correction

My Bad-misread the numbers and wrote what I thought was logical. Seed on MUB was $294 million not $29 million. Bets are the Specialist didn’t provide the whole thing.