The Federal Reserve's overnight rate that was reduced to 2.25% just yesterday, and sent the Dow flying 420 points into posititve territory, gave a good chunk back today. The DJIA falling 293 points to 12,099.66 means that Bernanke's magic bullets were a very short-term fix to what ails us.
Not even some positive earnings reports and falling oil prices could sustain the markets run-up. The following stories were posted by my colleagues:
This has to be very discouraging to the folks in Washington DC, and on Wall Street. There is no telling what tomorrow will bring but you can only cut so far before there is nothing left to cut, and you also have a dollar that won't buy much.
But one day is meaningless in the grand scheme of things, and reduced interest rates and increased stability in the financial sector has historically given way to a stronger stock market six months out. After all, that's when the presidential elections will take place and those are the high stakes games to keep your eyes on. For that reason, I expect still another rate reduction before too long so that there is time for it to take effect.
Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture and planning firm. He writes Chasing Value and Serious Money columns.
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Reader Comments (Page 1 of 1)
3-20-2008 @ 3:59AM
joe said...
sure hope that you are not trying to saying this mess our leaders got us in is going to be ok in 6 month because it won't be. It won't even be close.
Oh I get it, you sell securities and you expect this artical will help you sell more. It seems like you are like the people at Bear/Stearns packaging trash loans with good loans and then selling the garbage as AAA securities. Most experts do not agree with what you are saying.
Sheldon you should be ashamed of yourself.
3-20-2008 @ 4:06AM
Sheldon L said...
Joe, your name calling is sad.
Please point out the experts you are speaking about, most do agree with my position, starting at the top with Warren Buffett. If you check you will learn I do not sell any securities of any kind and receive zero fees or commissions from anyone.
Our investment company is private and we invest on our own account.