Hi Bernard:
I wrote the following about a hour ago when the Naz was around 3780, but my browser crashed, then a few phone calls. Anyway . . .
Yes, a very similar thought crossed my mind about 10 minutes. There is a tremendous amount of "new-wealth" being wiped out over the past week. It will undoubted have a reverberating effect on the economy going forward, and as a result, I think the Fed will move with extra caution in raising rates any further.
And who stands to benefit from a softening by the Fed? Well, some of the "old" (I hate that term because it is so misrepresentative of what is being described) economy stocks, with their debt-laden books will be one.
Well, I'm also doing a bit of chart reading of the Naz composite as I write this. I'm no chartist, but it looks like the next level of support is in the 3500-3600 range, and I think we're just about there. What's a 100 points?
A Tale of Two Economies: "These were the best of time; these were the worst of times (or something like that)" |
