If you believe like many of the pundits, like Cramer, who expects a large cut, or series of smaller rate cuts, then the US equity market will have a nice run up. This will continue to fuel the market for a while. But only for so long if things are as bad as many believe. The upcoming credit crunch looks very ominous on the horizon.
Short term the stock market should continue to be strong, IMO. But if we use the bond market as our leading indicator, we should continue to see problems on the horizon that simply won't disappear by cutting rates alone. Other issues must be addressed to fix what's broken.
I think that if one believes that the problem won't go away easily, then trading long the high flying stock market while moving those same profits methodically into "safer" investments (cash, gold, eventually oil, etc.) can be very short term healthy and long term wise.
Hey LT, don't I get any credit? I told you to look at the short term gold charts! <g>
Best of luck to all,
Michael
.....remember when we were going to have a Rig Party? Maybe we should change that to a gold party and have one when the price of gold hits $350? |
