Seldom do any of us say that we feel good with a 356 DJIA loss, but it sure felt good.
Unfortunately I am afraid the Fed has put themselves in a ‘box’–back to the same old thing where the Fed yaks and the market prices in a rate cut. I guess everyone can have a good weekend, before we are back at the computer Sunday night.
I think we are going to see coordinated global interest rate cuts Sunday night–with the 10 year treasury at 1.12% a 1/4 point cut would still leave Fed Funds above it. I hate the thought of the rate cut (I’m talking my book here)–I don’t think it is helpful, plus us income investors will see our meager 1.50% money markets returns melt away.
If we don’t get coordinated Fed activity Sunday night I am afraid we will see a weak open again on Monday–but absent serious virus news on the weekend we likely are moving toward a base (famous last words).
Well for now I am done until tonight at which point I am going to survey my portfolio damage and get serious about putting together a shopping list.