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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (76239)	12/20/2006 2:39:17 PM
From: Real Man	Respond to of 110194

I agree with that. ST T-bills are fine, though. They always give profit -g- Given all the printing - another large coupon pass today - we could go higher for a while longer. I think it's a matter of little time before gold and oil zoom higher, possibly much higher, given all the printing that the Fed has done in the past month. Maybe copper? Got 2c copper pennies? -g-

To: Rarebird who wrote (76239)	12/20/2006 3:43:23 PM
From: $Mogul	Respond to of 110194

I would be cautious on rates going much higher from here. Bonds are currently undervalued compared to stocks. I agree prospects for gold and oil do look positive. Currently 14% price in for FF futures of a Fed rate cut at the end of Q1 07". With the target on the short-term Fed Funds Rate at 5.25%, members of the Federal Open Market Committee are scheduled to reconvene on January 30-31. February Fed Funds Futures, pricing the outcome of the January meeting, settled at 94.760, or an implied rate of 5.240%. Further out, April Fed Funds Futures, reflecting the outcome of the March 20-21 meeting settled at 95.785, or an implied rate of 5.215%. At that level, market players are pricing in a 14% change for a quarter-point rate cut by the end of the first quarter of 2007.