Pete Kendall’s blog explores the new study of socionomics. Understand this URL copntent is changing, you can find the comments later at this site under the heading NEWS for Oct 17 2006. Pete is making the same point I made in Fin State Analysis last night, which is that mergers take place at market highs, no one buys when this stuff is cheap. For example, a hedge fund waited till oil got over $70 a barrel to buy Kinder Morgan. The merger in question is the Chicago Board of Trade and the Chicago Mercantile Exchange. They have competed in different commodity markets for over 100 years, only now are they merging. The reason is explained by socionomics. Bull markets exude a feeling of inclusiveness, let’s get everyone on board. Bear markets are exclusive, kick the bums out. I have noted we are already seeing bear signs the way Boards are sending CEOs packing, one every six hours. The article notes that at similar merger of the NYSE has not resulted in higher prices there either. A giant hospital takeover, the largest ever recently occurred. I also noted that Neiman Marcus actually LOST money due to the high debt level brought by its acquisition by two hedge funds. If Neiman’s is not making money in the best of all worlds, ie DOW Industrials 12,000, where will they be at DOW 9,000?
NYSE trades under the symbol NYX, CBOT and CME are BOT, take a look.
DLE
Professor Elam 
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