Now, the Market Decides to go South…
No, the Dow Jones couldn’t start falling when I had a put on the DIA open.
Instead, my put had to expire before the market started moving down. Argh!
But all is good. I’ve got a few good calls on tap. So we’ll see how the market reacts today. My thinking is that even if the market drops, the stock i’m looking at should rise.
It’s all about patience here. I’m in no rush to grab gobs of money from unsuspecting market participants. And neither should you.
There is one big risk looming. And that’s the FOMC meeting next week. Most people think the fed will drop rates by a quarter point. But everyone will be paying attention to the comments. Will the fed look to stop dropping rates? I think they just might. And that could prove either disastrous or a boon for the market. I’m not quite sure yet.
With that being said, it’s hard to try and predict how the market would react. So that’s why it’s good to stay balanced.
Seeing all of the news coming out lately regarding inflation going nuts, I think the Fed is going to keep rates as they are.
Although they should not be, the Fed has become a totally political entity, and they will do what the people would like to see, not necessarily what would be the best for the economy.
As for my two cents, I think the Fed should RAISE the rate. Inflation is getting to be so rampant that I think it is better to have a market cycle recession for a year than $2000 gold and $200 oil.
Am I off base here?
Jonathan,
I completely agree with you. Right now the last thing the world needs to do is lower rates. All of this demand caused by emerging markets are straining the foundation of every market in the world.
We simply don’t have the capacity to fulfill all of this demand. China, India, Russia and Brazil need to do something immediately to cut their growth rates in half.
It would be one of the only ways that demand would slow (a little).