The Markets November 4, 2008

Tightening Economy Squeezes 401(k) Match Suspensions

A New York-based commercial real-estate broker and a Pennsylvania broadcasting company are the two latest employers to cease their 401(k) matching contributions as part of belt-tightening efforts.
Reported by

Real-estate firm Cushman & Wakefield told employees earlier this month that it planned to halt merit raises and suspend its match, according to a Washington Post report.

Meanwhile, a Boston Herald news report said that Bala Cynwd, Pennsylvania-based Entercom made a similar announcement in recent days about its match.

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In both cases, the moves were made as part of a variety of budget cutting efforts, carried out at least in part because of the continuing weak economy, according to executives.

Tulsa-based Dollar Thrifty Automotive Group cut its match in January and a bankrupt Frontier Airlines made the move last year.

General Motors recently generated a good deal of publicity when it suspended its 401(k) matches for 32,000 eligible white-collar employees—the second time this decade it has suspended its retirement contribution (see Benefits Cuts Next on GM Agenda).

Products November 4, 2008

Direxion Enters ETF Market

Direxion announced its entrance into the exchange-traded fund (ETF) space with the Direxion Shares 3x ETFs, slated to begin trading November 5.
Reported by

The new ETFs are a group of leveraged bull and bear index funds that seek 300% of the daily performance, or 300% of the inverse of the daily performance (before fees and expenses) of the Russell indexes they benchmark.

The new Direxion Shares ETFs are designed to give investment advisers and sophisticated investors the ability to execute active trading strategies in all types of markets, according to a release. The funds deliver increased market exposure via 3 to 1 leverage, long and short of their respective indexes, and afford investors the opportunity to effectively allocate capital to seek improved risk-adjusted returns.

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The new Direxion Bull and Bear 3x ETFs include:

  • Direxion Large Cap Bull 3x Shares (BGU)
  • Direxion Small Cap Bull 3x Shares (TNA),
  • Direxion Energy Bull 3x Shares (ERX),
  • Direxion Financial Bull 3x Shares (FAS),
  • Direxion Large Cap Bear 3x Shares (BGZ),
  • Direxion Small Cap Bear 3x Shares (TZA),
  • Direxion Energy Bear 3x Shares (ERY), and
  • Direxion Financial Bear 3x Shares (FAZ).

For more information, contact Melinda Staab at 973.400.1341 or melinda@jcpublicrelations.com.

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