Ben just screwed himself and this market

Quote from detective:

This sets up a dangerous precedent for Bernanke, and it reinforces my suspicions that he's another Greenspan clone.
August 17. December 12. Now January 22.

Those were all surprise moves to either cut the discount/Fed funds rate, or introduce TAF. That's 3 surprise moves in less than 6 months. He's setting up dangerous expectations on Wall Street where the markets will be rescued anytime we get a big selloff.

With the FOMC meeting just 1 week away, he blew it. He couldn't hold his load and just splattered it all over his banker friends. Market was very oversold so we'll probably rally till FOMC and maybe another few days after, but then we'll get another huge selloff where everyone will beg for another intermeeting rate cut. This is very similar to 2001.
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Actually, if you look at the fed fund futures for Feb08, there is already an expectation for a further 50bps rate cut I guess.
 
I believe Marty Zweig said this. He also coined "the trend is your friend." He also used (and maybe still does) a composite approach that looks at Fed/monetary policy, overall trends and a few other things. That's the key.

If the Fed is still cutting after there's evidence of a bottom and a new rally starting (Spring/Summer 2003), I agree. Don't fight the Fed when the trend is also your friend. But if you followed the "don't fight the Fed" mantra starting in Jan '01, you'd wait over 5 years just to break even (S&P 500 was in mid-1300s at that time).

Quote from crgarcia:

Don't fight the Fed, as simple as that.
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Quote from MKTrader:

I believe Marty Zweig said this. He also coined "the trend is your friend." He also used (and maybe still does) a composite approach that looks at Fed/monetary policy, overall trends and a few other things. That's the key.

If the Fed is still cutting after there's evidence of a bottom and a new rally starting (Spring/Summer 2003), I agree. Don't fight the Fed when the trend is also your friend. But if you followed the "don't fight the Fed" mantra starting in Jan '01, you'd wait over 5 years just to break even (S&P 500 was in mid-1300s at that time).
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yup, he did

he also said 'buy Global Crossing' on wall street week, early october 2000

--> OOPS

(too bad he didnt also believe in not fighting stock market sector crashes)
 
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