The Federal Reserve Board and Chairman Bernanke are not done cutting. Last week before departing on holiday I posted Serious Money: 1% drop by Fed is possible and I awoke today to find that Ben is reading my posts. Today's cut is just the beginning. Today was the rough cut; next week The Fed will be sanding around the edges trying to smooth the markets out with possibly another quarter or even half a point cut.

What's the hurry you ask? I discussed that last week. The Fed needs six months for the impact to be felt by the overall economy, and more importantly, prior to us walking into the polling booths on election day. That means: cut now, polish later. You will be seeing and hearing the politicians all running in front of the parade come summer -- count on it!

The banks and retailers are up solidly today as I write this because the cut will help banks in two ways. It will create more borrowing, and the latent rate reductions in "increased margin spreads" will mean higher short term profits. The retailers are up as speculators believe consumers will head back to the stores ... that may be premature.

This morning, the market has been extremely volatile, which personally is very ironic because I am writing this from the foot of the Arenal Volcano in Costa Rica.

If you want to buy into this market, the best way to do so is to dollar cost average into the index funds and ETFs. Read last weeks post - got to run...

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. Read his Chasing Value and Serious Money columns.