3 replies to this topic

[Wombat]

What do you think would happen if and when the Fed eases? A knee jerk rally probably, but then what? Do you think a rally would be sustainable, or do you think the ease would show the Fed is scared and knows something negative we don't know down the road?

[qqqqtrdr]

What do you think would happen if and when the Fed eases? A knee jerk rally probably, but then what? Do you think a rally would be sustainable, or do you think the ease would show the Fed is scared and knows something negative we don't know down the road?

I think we rally here. The dollar is low compared to other currencies. Foreign investers should jump into the market and ride the dollar higher, as the US will produce better returns than foreign stock. I do believe the Fed will stand pat on interest rates. I also am of the opinion that brokerage houses are ready to buy and produce a long run, and credit fiasco that has been known for a year is just an excuse to take the market down some.

We have had a 90% down volume day three times over the last couple of weeks. If the big players wanted to try and keep the market higher and couldn't we wouldn't get these days. It appears they are flushing out the system to get a base to take the market higher.


Barry

[LarryT]

What do you think would happen if and when the Fed eases? A knee jerk rally probably, but then what? Do you think a rally would be sustainable, or do you think the ease would show the Fed is scared and knows something negative we don't know down the road?

Dec 2005 DR. John Hussman did an article of the FED hike/cut cycle and he found the PE of the SnP-500 tells us what will happen. Article here; http://www.hussmanfu...c/wmc051219.htm

Larry

[Wombat]

Thanks Larry! I forgot about that commentary! I have been reading his recent ones and I forgot his old ones.