Where are the bulls?
Written by A Forex View From Afar on Wednesday, March 19, 2008Back to www.thelfb.com
Did anybody see the Bulls today? I can only see Bears, and it’s not good to stalk the Bulls, as long as we are in a Bear market.
What happened to yesterday’s 4% gains, that would re-launch equities to their peaks? Maybe they realized things aren’t going to change soon.
These rate cuts haven’t reached consumers yet, more especially sub-prime borrowers and new home buyers looking for a good loan deal. But those consumers all got hit by higher gas price and higher bills in general, quicker then anything the Fed or Government does.
As honest as I can be, only a little child thinks a full month of housing inventories can be sold overnight. Permits for new construction dropped to 16 years low, at a recessionary level.
About the FOMC decision, I can only agree with a 75 points reduction in the Target Rate. A bigger cut may have helped the Wall Street guys, but I don’t know how much it could have saved the economy, especially when thinking at 2009/2010. Inflation long-term costs are very high, hopefully we won’t see or feel them.
I’m taking my rifle and going to search some Bulls out. Maybe on my way I’ll find some other optimists to join me.
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