The old saying "Don't fight the Fed" is not backed by facts. Periods of rising rates with background of modest inflationary expectations when rates are rising from low levels, are more bullish for stocks than periods when rates are deeply cut from high levels with background of higher inflationary expectations.
When rates are cut to pump more liquidity(debt) into the system is not a bullish event for stocks at all. In fact, inflationary expectations appear to be just as important.
Edited by linrom1, 20 September 2007 - 01:42 PM.
