Entrance point on every dip in the market, "Don't fight the FED. is the old saying"
December 17, 2008
– Comments (4)
that is what has been the case since Thanksgiving. Yesterday's move by the FED. finally pushed major indexes above flat for the month of Dec. and finally started the Christmas rally that up until yesterday had a tough time starting up.
Impact of yesterday's cut will be felt by consumers with loans that are tied to the prime rate, a benchmark rate that typically moves in lock step with the federal funds rate. "The only place where you would see a concrete impact at the consumer level would be things that are directly tied to prime," says Mike Larson, a real estate analyst at Weiss Research. Many home-equity lines of credit and certain credit cards with variable interest rates are tied to prime rate. As such, borrowers with these loans could see their interest rates decline.
Those bears screaming as loud as they can that the FED. is out of bullets? Well they must have either failed in business school or flat out lieing. The FED. has so much that it can still do to boost the economy. The list of what it can do is so long that I don't have the time to list them all.
Anyway good luck if your intention is to fight the FED. That old saying didn't become a saying for nothing. There is much to learn from old sayings.
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