fed cut interest rate by 50 basis points

self

[freeper12]

fed cut interest rate by 50 basis points

[truth_eagle]

Don't sell into the market today unless you are suicidal.

ALL PLAYERS of the Plunge Protection Team will be suited up and on the field today!!

[Dog Gone]

Good news. I expected it, but it's good to know that the Plunge Protection Team is in action today.

It's gonna be a wild ride on Wall Street today, but just getting through it, regardless of the final close, is a major accomplishment.

[Wyatt's Torch]

Some interesting developments by the Fed. Last week the pump $50B into the banking system - Gold hits an 18 month high today at $291. Now this cut. They need probably another $50B to get gold over $325. Ironically, this could turn out to be the recession killer.

[1rudeboy]

With all this jaw-boning going on, people are failing to realize that a 10% drop over the course of a week is the same as a 10% drop over the course of a day.
(Unless you are trading in the pits, of course).

[uncle_ebenezer]

As "they" say: DON'T FIGHT THE FED. .....nice handle

[Wyatt's Torch]

people are failing to realize that a 10% drop over the course of a week is the same as a 10% drop over the course of a day.

Not on an annualized basis and psychologically.

[Wyatt's Torch]

The Fed has been very wrong for the past few years. They did the right thing now but, unfortunately, only as a reaction to a disaster.

FReegards

[Dog Gone]

I don't know what gold will do today, but I heard on the radio this morning that Japan is buying dollars in order to prop it up. It's very weak everywhere.

[jungleboy]

What should I do with my DAL stock?

[anniegetyourgun]

I just wanna know where I can invest in plutonium.

[Moonman62]

Ironically, this could turn out to be the recession killer.

It usually takes a crisis for the Fed to meet liquidity demands doesn't it?

[Dog Gone]

Good lord. Sell. No American air carrier is likely to show a profit anytime soon. Staving off bankruptcy will require a taxpayer bailout.

[1rudeboy]

I agree. But on a 401K sheeple basis.

[Moonman62]

Before the Fed rate cut, the Nasdaq 100 pre-market indicator fell 3.5 percent, a move based on pre-open trades signaling a sharp decline in the U.S. stock market. After the Fed news, the decline was about 2.2 percent; then the indicator fell again and was off more than 4.3 percent.

The Fed disappoints again.

[jungleboy]

Damn straight I'm selling my DAL. I'm going to roll it into ROK. Anyone know the defense contractor that makes the tomahawk missiles?

[uncle_ebenezer]

Admittedly the Fed has been wrong in the past. Over the last 18 months, the market has negatively reacted to their tightening moves. Over the next 18 months (we are at or very near to a bottom, although the next 6 weeks could be very volatile) the market will positively react to the easing moves.

My point is that many researchers have demonstrated that a wise investor DOES NOT FIGHT them. They brought the market to its knees with their mistakes of tightening credit too much. Now that they are easing credit, it is wise to follow their lead on an intermediate-term basis. Anyone who has been fortunate enough to be cash-heavy right now would be well advised to shift to equities.

Plus, we're about to enter the 6-month sweet spot of the investment calendar.

[Dog Gone]

Anyone know the defense contractor that makes the tomahawk missiles?

I believe it's Lockheed Martin (LMT). It was priced at $38 per share last week, but I doubt you can buy it at that price this morning.

[dbbeebs]

General Dynamics (and other contractors) make the tomahawk.

[dbbeebs]

Latest fact sheet from the Navy: Contractor: Raytheon Systems Company, Tucson, Ariz.