Friday, December 1, 2000
This is The Wall Street Digest Hotline for Friday, December 1,
2000, at 6:00 p.m. EST.
The Dow Industrial Average lost 41 points, while the Nasdaq
Composite gained 47 points.
Wall Street is confusing investors: The chief market strategists
are bullish, while the market analysts are bearish, because of
a slowing economy. All of the economic numbers point to a
series of interest rate cuts by the Fed, which will probably be
the trigger for the next bull market leg to begin.
However, the Fed has already accelerated the money creation
process, which is a far more powerful force to stop a recession,
interest rate cuts are just more visible and they are far more
closely watched.
How soon the Fed moves to cut rates depends on how good or
bad future economic numbers look. I am very sure about
which stocks will lead the next leg-up. However, it is impossible
to forecast the market bottom because no one knows when the
Fed will move to cut rates.
Make no further investments. Traders should keep a close 20%
stop-loss on all positions. |
