SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 217.15-2.5%Nov 20 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Glenn D. Rudolph who wrote (79674)10/5/1999 6:55:00 PM
From: Eric Wells  Read Replies (2) of 164684
 
I don't know what others think - but I think today's action by the Fed (moving to a tightening bias) was probably one of the worst possible for the market (short of a major hike). Since the Fed did not raise today, and since we are looking at a tightening bias, all investors are left with is the prospect of a hike in November. And so, I would guess that for the next month, we are going to see much of the same volatility that we have seen in the past month - and once again the market will be holding its breath with the release of every new economic number and report. Think of Greenspan evaluating the different options:

1. Hike .25% with neutral bias: market decline followed by return to market euphoria

2. Hike .25% with tightening bias: market crash

3. Hike .5% with neutral bias: market crash

4. No hike with tightening bias: market remains in check amidst uncertainty

5. No hike with neutral bias: instant market euphoria

I can see Greenspan evaluating the above and selecting 4 as the best short term approach of trying to deflate the bubble without a meltdown. I think we're in for a rocky road over the next month or so - possibly through the end of the year.

Would appreciate other impressions.

-Eric
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News