q:
>>Without a significant new buyer, the fixed-income markets, Jim contends, will have to
be "repriced" to make up for the exiting of the leveraged funds. In other words, he
foresees another hit to bonds of the lesser sort (which, of course, constitute the bulk of
bonds) and a resumed widening of spreads. And if the credit market is as troubled as he
insists it is, he thinks the big rally in stocks is a goner as well.<<
Agree with most all in the quote, but it stops short of the
next step. Greenspan is committed towards breaking up the
"freezing up" of the credit markets. Those rate cuts are
extremely powerful. Fundamentally, the US economy
has many strong points. There are already signs of
the "credit crunch" being loosened, but of course, we
have to keep focused on this...the most important thing market
wise to focus on.
Last few days, 200 DMAs for market indices
have been broken, so the market
is saying it's more optimistic. Whether you think it's
a head fake or not, we shall see.
joe |
