on the market Friday. The question is was he an angel of mercy or darkness?
Stocks took wings and flew out of a deep pit as a report hit the trading floors that Wayne Angell, a former governor of the Federal Reserve, was predicting his former colleagues will slash interest rates another half-point next week.
However, there's no guarantee that Angell — now chief economist at Bear Stearns — has a pipeline to Fed Chairman Alan Greenspan's inner sanctum. If no rate cut is forthcoming, jilted traders could send beleaguered stocks to even lower lows next week.
As the day ended, Barry Hyman, chief market strategist for Weatherly Securities, urged caution. "When we get seriously oversold markets, rallies can start at any moment. Aggressive traders take advantage of that," he said.
To be sure, there remain few other reasons to buy and plenty to sell in the midst of an economic slowdown that seems to be more and more stubborn.
Predictions like Angell's trigger fleeting hopes the Fed will be able head off the worst with more rate cuts. "That's preventing the capitulation. There's this belief among investors that they're not going to just dump, dump, dump because the Fed is going to do something."
Habe ich das richtig verstanden, "HOFFUNG" besteht und es wird angenommen
das der Fed einen weiteren Rate Cut von 50 Basis Point bekanntgeben wird.
Das war auch meine Annahme. Sollte dies jedoch nicht passieren, sehen
wir sofort einen weiteren "down-trend", wobei sich der Markt nach dem
kurzen down-trend wieder drehen wird.
In meinem Fall, werde ich 50% meines Cashbestandes naechste Woche
investieren.
Stocks took wings and flew out of a deep pit as a report hit the trading floors that Wayne Angell, a former governor of the Federal Reserve, was predicting his former colleagues will slash interest rates another half-point next week.
However, there's no guarantee that Angell — now chief economist at Bear Stearns — has a pipeline to Fed Chairman Alan Greenspan's inner sanctum. If no rate cut is forthcoming, jilted traders could send beleaguered stocks to even lower lows next week.
As the day ended, Barry Hyman, chief market strategist for Weatherly Securities, urged caution. "When we get seriously oversold markets, rallies can start at any moment. Aggressive traders take advantage of that," he said.
To be sure, there remain few other reasons to buy and plenty to sell in the midst of an economic slowdown that seems to be more and more stubborn.
Predictions like Angell's trigger fleeting hopes the Fed will be able head off the worst with more rate cuts. "That's preventing the capitulation. There's this belief among investors that they're not going to just dump, dump, dump because the Fed is going to do something."
Habe ich das richtig verstanden, "HOFFUNG" besteht und es wird angenommen
das der Fed einen weiteren Rate Cut von 50 Basis Point bekanntgeben wird.
Das war auch meine Annahme. Sollte dies jedoch nicht passieren, sehen
wir sofort einen weiteren "down-trend", wobei sich der Markt nach dem
kurzen down-trend wieder drehen wird.
In meinem Fall, werde ich 50% meines Cashbestandes naechste Woche
investieren.