This is what they have created to the unsuspecting investor, a true moral hazard! Yes, things can be manipulated short term but longer term it cant. So, if you are managing risk thinking the Fed will "save the day", you are very, very wrong. Moreover, they have lost all control. IMO
Think about this. If financials are soooo attractive, then why arent the hedge funds stepping up? They have tons of money. The reason, they are very smart and you dont just buy something if you dont know the book value of it.
Honest reasoning? OK, IMO we and FED guys are waiting for tomorrows data about CPI & if it's going to be like today's PPI we are going to get what Ben promised, Rate Cut and the agressive one... If U don't remember or U did not listen to him please go and read the whole statement from last Thursday. After todays data about Ret. Sales and NY Empire St. Mfg = IT IS A SCREEEAMING CUT CALL... As Ben said he is determined to do it. Do not listen to CNBC dwarfs. The common sense is the best U can use today..
BTW,EMC is the one of not so many stocks to rebound fast = 401k and other funds (they need to get in about Jan 15) $$ are going to buy EMC as a first stock...Check the yesterdays transaction at the close... Volume!
Common sense should tell you that the economy needs this rate cut yesterday. Look at the 2, 5, 10 year bonds. The economy is getting killed, and it does not take a Fed chairmans education to see that. That is why I do not understand why they are so slow to do what is right!!!!!!!!!!!