Is it showtime for the leisure and entertainment exchange traded fund (ETF)?
Movies and television are escapes that are sorely needed, especially if the markets continue in their current direction. But if the 11-week old writer’s strike drags on much longer and threatens the Oscars, the rest of the television season and the 2009 movie season, we’re going to be forced to find other means to go into denial for a few hours each day.
A reprieve may be in sight, though. Peter Sanders of the Wall Street Journal reports that the Directors Guild of America has reached a tentative three-year deal with the major Hollywood studios. The deal addresses many of the issues that led to the writer’s strike to begin with, including compensation for use of their work on the Internet.
If the deal is approved by the DGA, a fork in the road could appear before the striking writers. On the left, they could feel pressured to forge their own deal and end the strike. On the right, they could wait until June, when the Screen Actors Guild’s contract expires. SAG and WGA have so far been closely aligned.
Either way, the strike hasn’t been good for the PowerShares Dynamic Leisure & Entertainment (PEJ), which is down 18.2% since the strike began on Nov. 5.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.