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Politics : High Tolerance Plasticity

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To: The Ox who wrote (2032)3/20/2001 3:27:16 PM
From: ItsAllCyclical  Read Replies (2) of 23153
 
Michael H - Re: Don't fight the Fed

>> One note: the farther along in the easing cycle the more you want to be careful not to fight the FED. <<

Agree 100%, but we have yet to see the DOW crater and estimates get taken down accordingly. Still too much optimism.

>> I don't buy into the notion that the FED doesn't have the tools to fight a recession. <<

What about a global recession? What about the fact that foreigners basically have far too much exposure to the dollar, t-bills and our equity markets. If they decide to sell or reduce their exposure there's nothing the Fed can do to stop the flood.

>> I also think that they are very careful not to upset the balance in a single bold move. It wouldn't surprise me to see an intermeeting cut if the market stays weak over the next month or so. <<

Possibly, but the same thing was said about the previous meeting and the market continued to fall and we got no inter-meeting cut.

All that said I have to remember not to be too negative so keep reminding me about the bullish points. You're right we could get some buyers step in here, but if we manage to bounce back to Nasdaq 2200+ there'll be some great shorting ops again imho.
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