S&P 500 FINANCIALS INDEX fell from 170 to 130, wow!! Banks took one of their worst beatings ever. Citigroup (C) is coming apart, now they have to separate into 2 businesses, taking the stock under 4 (Dow stocks aren't supposed to trade that low). Bank of America, another Dow stock & until a few months ago a Dividend Aristocrat, will get even more money in its gov bailout package requiring it to slash the quarterly div to only one penny. Bank problems which were supposed to be over at various times last year, ain't going away soon!
•BofA posts 4Q loss of $2.4B, cuts dividend
Other indices performed flattish, a little better than the Dow. The Alerian MLP Index retains its supporters. After a spike up on the first day of trading in 2009, it has been pretty much even, not straying far from 195. The next couple of weeks will a time of trial when distributions & guidances are announced. Strong ones should maintain or increase distributions, but weak ones are clearly vulnerable to cuts. Constellation Partners (CEP) has already announced a 75% distribution cut. It will be interesting to see if the strong can keep the average on an even keel (at least) or the weak ones will drag it down.
Alerian MLP Index --- 1 week
After all the depressing news from the largest banks in the country combined with a new congress struggling to come up with a stimulus package, markets may be seeing more pain ahead.
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