Wow, I Leave to Drop my Son off at School…
Posted on January 22, 2008
Filed Under Equity Markets, Interest Rates, Investing, Politics |
and by the time I get to the office the Fed has cut the funds rate by 3/4 of a point to 3.5%. There has not been that big a drop at one time since 1984.
Then, the futures markets took a jump upwards, digested the Feds actions and then…
Tanked right back down near where they were before.
We are still going to see a sell-off today and in fact it might be even worse than if the Fed had taken no action at all.
Why?
Because the Fed did exactly what the pundits where whining for over the last few business days.
Later this morning, when the panicked sellers see the Fed action did not put much of a cushion under the sell-off, they are going to panic more and that is why I think this action could actually accelerate the decline.
It still looks like a good day to hunt for bargains.
Leave a Reply