AS - I hope you really don't believe your comment:
"Meanwhile we are seeing stocks settle at their bases thereby providing good bounce opportunities for the near future. Looks like the Fed will have to continue cutting sooner than later though. Another 1/2 point rather than 1/4 point until the doom and gloom washes off for good and everything stabilizes. Greenspan knows what he's doing I believe. Nothing to stop him from cutting again, even next week. "
First, it isn't Greenie's job to keep cutting rates til the stock market is where we would like it
Second, we are just coming off a month where there were 2 1/2 point cuts - thats 1 whole point in the month - something unprecedented. Don't expect another 1/2 point next week just because the market is down as you allude to
Third, todays employment figures actually give lots of arguments to hold off on any further cuts for some time.
All that said, its possible Greenie could cut 1/4 point intrameeting given the next meeting is not til late March - but I wouldn't expect that to occur for at least a month unless something unforeseen happens. But it won't be because the market is going down.
Its ok to be bullish if you want, but be bullish for the right reasons - not the hope that Greenie will bail you out.
BTW - I have been rotating out of techs the last week, rolling into more typical fed easing plays. Still have soem techs, many value plays, but also have built up cash to use for buys when I feel the environment is right. So, I am generally bullish, but more bullish in NYSE type stocks for now. Too many earnings warnings, continued capex slowing, too many big gains from Jan 1 til now, etc to get overally bullish on tech right now |
