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

To: orkrious who wrote (78169)	1/25/2007 9:44:27 PM
From: $Mogul	Read Replies (1) \| Respond to of 110194

Actully, I do see it as a possibility as the "jaw bonining up the fed has done acomplished their short term goals". Thing I don't agree with if they do move to neutral, I don't see equities rallying as any "preceived jawboning down cut" this late in the cycle would be very negative for equities as the Fed has to cut to save a recession is apparent to the smart mangers out there. "If the FOMC were to surprise people and move to a neutral stance next Tuesday (something former Fed-head Wayne Angell actually suggested they do on Heehaw today), it could cause a temporary pullback in long-term yields given how oversold the bond market is, even though I don’t believe the current weakness in the long end has anything to do with the Fed. If that pullback in yields were to occur, not to mention the likely collapse in yields at the short end, it would no doubt trigger another rally in the equity market."