Fed acted moderately... only a 25 basis point increase, DOW up 217pts.

[MazeRat7]

That was a really nice rally today. Hopefully these past weeks were really just a correction and we have finally seen the bottom. Once again I think the bulls have a green light... but then there is always a bull market somewhere.

BooYa !!!

MZr7

[stepnw1f]

1. How Many People in this Country Benefit

from this I wonder.

[MazeRat7]

3. Pretty much anyone with a job... (n/t)

[stepnw1f]

5. You Sure about That

Maybe in degrees, but I really don't see the benefit from just having a job, working everyday to pay the money back to the top of this economic food chain.

[Selatius]

8. Yeah, I'm sure folks who are working at minimum wage agree

Today's rally really affected their ability to pay off the damn bills.

:sarcasm:

[MazeRat7]

10. Yes its a matter of degree... (but one day is not a trend)

Hopefully, this move by the fed will calm the markets at least until Aug. Then, provided things continue to improve, everyone benefits (to some degree) from a strong economy, slowed inflation, etc. It comes in all forms, increases in retirement savings values (401k's, savings, etc), if corp profits remain reasonable strong then the greedy bastards don't pass along revenue losses to the sheeple in terms of higher costs, which means no need to lay people off (unless they are just tanking), and of course rates are not so high that people/business would not consider borrowing for improvements, etc, etc.

Yeah, I am pretty sure that the fed holding the prime rate @ 5.25% from now to Aug will help stimulate a bit of recovery in market value that we have lost over the past month. Thats pretty much good for everyone...in a manner or "degree".

MZr7

[still_one]

12. The fed was never going to increase it by a 1/2 point

Nothing has changed fundamentally. The street "thinks" it knows the fed reserves intentions?

This rally is end of quarter window dressing. The so-called pros are trying to beef it up, but personally I would NOT be buying this rally

[still_one]

2. first of all the fed reserve chairman never said he would pause

that is way the wonderful "analysts" interpreted

Things to note:

1. Oil will start going up again. Probably touch 80 bucks a barrel this year
2. Adjustable mortgages are already going up, along with home equity loans, and will go up more
3. The problems with fannie mae and freddies are coming to a head. Who will bail them out and when
4. The dollar still needs to be supported
5. If housing values drop enough the banks will require PMI

In other words, how many people are close to the edge of their credit limit already. Was it a coincidence that the bankrupcy bill happened when it did?

I may be wrong, but personally we are heading for a perfect storm. I do not believe this summer will be very pretty

If you can hold for the long term, good quality companies you will be OK. Those that have to sell will be screwed

[MazeRat7]

6. Correct, they held to the path of the last 17 hikes....

While maintaining the hawkish rhetoric, it sounds to me from reading the statements, that they believe they have cooled things enough for the time being but that will depend on incoming news between now and the next meeting in Aug.

Personally, I am hopeful we may be getting off this bottom. I was caught with my pants down this last time and am more than pleased to see a 30+% recovery in my personally portfolio over the past couple of weeks (Today put me back in the black for the first time since late May). Its been a hard month.

As for the items you listed, I agree all could happen. The question is how do we play them ?


MZr7

[still_one]

9. The obvious answer is diversification

As long as you can hold through the down trends you will be OK. If you feel so inclined, you may want to write covered calls on some of the positions you own. Even though covered call writing is a conservative strategy, if you are not familar with options you should not do it.

Unfortunately, I am bullish on oil and natural gas companies. They have followed the market up, and some have gotten pricey. EP(El Paso) is one company that I believe will still go higher.

Six months treasuries went off this Tuesday at about 5.25%. That is the safest investment around.

Right now I am in oils, big pharma, treasuries, and cash. I am pretty bearish right now, and will hold it out until after the election in November, which I also think will limit the markets upside.

The Nasdaq is still far below its high of 5000. Some people have never recovered from that drop.

Those are just my views, I don't know anymore than anyone else, but as long as consumers continue to buy we should be OK

[Warpy]

4. All the stocks I inherited went up

I keep wanting to cash out and stash the money in Switzerland.

[cornermouse]

7. It merely shows that the Dow has no connection with the economy

or reality. Unfortunately that state of affairs cannot continue forever. Eventually reality will not be ignored any longer and when that happens expect the market to crash big time.

[still_one]

11. nasdaq is a perfect example

remember when nasdaq was 5000 in the year 2000.

Anyone who bought the nas when it was 5000 still hasn't recovered