Will Fed's lower the rates ?
I think so ,, reason are as follows,,,
Yesterday ,, Mr. Grenspan spoke to senate banking committe , and used these terms ,, " I will open doors very wide,, " and today's bail out of Longterm growth fund by the Feds confirm that they are indeed staying top of the whole banking sector as US bank is not immune any more to what is happening in Asia , Russia and Latin America,, trhe major markets... wit out the rate cuts will mean ,, insurmountable debt service by emerging economies and quite simply a
global melt down ,,banks need low LIBOR rates to lend the money out to
emerging economies at low risk ,, in turn ,,it drives dollar down so US goods
can be bought generating profit maintaing the status quo of production and job security here at same time producing profit .. in trun this profit will be returned to the the emerging economies as an investment and loans,,,
No man is an island,, and no economy is isolated,, in this time of global village ,, where people and commerce can travel within seconds vis internet and by physical means in matter of few hours,, think about it ,, from darkest part of Africa to upper source of Amazon ,, you can be on line .. or fly from point A to B ,, in less than 12 hours,,, what took years ..
With this rate cut in mind ,, I find bank stocks attractive,, especially CCI, CHM and NB,,who had 53% increase in earnings last qt.. also they are all near 52 week low,, risk here is minimal and upside great ,,, rate cut also means ,, no devaluation for Brasill, I like TMX and TBR as well ,,
We all know by now,,that CMGI had a great earnings of 1.38 vs (55) ,, Call me a madman ,,but I think we see 70 tomorrow ,, we hit 63 1/2 ,, today .. yesterday we went from 46 1/4 to 61 .. I do not see why we will not open at 63,,and on short squeezing ,, go to 70 ,,
Also ,,the news was so long ,, I don't think every one read the deal with Compaq ,, carefully ,, all the Presario now have 4 buttons in the front ,, that takes you to your favourite function,,one of that button will be dedicated ,, to CMGI's net link ,, that will be the official ,,CPQ net launcher.. it means ad revenues..
What else do I like here,, gold again yes,, low interest ,, weak dollar ,,means gold will rock good stocks like NEM ,, Barrick Gold,, etc ,, look at XAU index and you will get a sense ..
Oils,, don't discard yet,, let the winter weather speaks for it self ,, whole Europe had lousy ,,2 weeks of sunshine this summer,,as we speak ,, half of Europe is enjoying average temp of 45F ,,every day ,,
After the rate IEI ,, we will go into October ,,I remind you again and again ,,in no uncertain terms ,, we sell into any rally and we go short,, and look for November rally if there is any ,,
CYPH ,, we took the profit ,,we got out,, and as expected it crawled back to 6 ,, I loaded up again today up to 6 1/4 .. the real news,,not today's ,,is coming ,,
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