Saturday, May 12, 2007

The Dow and S&P are both up 6 straight weeks. The last time the Dow was up six straight weeks was in November and December of 2003 which was the early stage of the bull market. The Dow was up 8 straight weeks and the S&P was up 9 during that period. The last time the S&P was up 6 straight weeks was in August and September of 2004. The S&P went from a low of 1060 on August 13 to a high of 1131 on September 21 or a 7% gain. Over the next 5 weeks, the S&P went as low as 1090 on October 25 or a loss of 4%. That ofcourse was right before the Presidential elections and than we proceeded to rally all the way to years end.

The Carlyle Group is the latest private equity outfit seeking to raise $1 billion via an IPO of an investment fund. This follows in the footsteps of similar offerings by Apollo Management LP and Kohlberg Kravis Robert & Co. Add in the potential IPO of Blackstone Group and the recent Fortress Investment Group IPO and what you have is alot of opportunistic dealmakers trying to cash in on this liquidity bubble while it lasts.

Below is an interesting equity style box courtesy of Morningstar showing how showing how growth, value, blend, midcaps, small cap, large cap have played out over the last several years.

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