Your previous post had "Strong Sell" as the recommendation. That's why I made the short-covering comments. $90K is quite a position to have on a stock as risky as this one. You must have a very large portfolio?
"You will see, and currently see that the restaurant and retail sector will not be all that good over the next 6 months. "
So far, I'm very unimpressed with Bernanke. He's been inconsistent. Frequently contradicts himself. If only we had someone like Volcker at the helm, we'd be in much better shape.
Stephen Roach has been writing for quite some time that the Fed needs to take these asset bubbles into consideration, instead of just targeting core CPI. He's right. But none of these gutless wonks at the Fed have the BALLS to do what's right rather than what's popular. Cowards. Greenspan was a terribly vain man, and thus he did a lot of damage. Brilliant men with all that education and they still can't get even the most simple thing right. I favour abolishing the Fed altogether. They have not come close to fulfilling their mandate. I trust the markets far more than a secretive, powerful clique of men.
Most people don't realize what's happening, but the Fed is intentionally letting the air out of the stock market. They won't let it get too out of hand (i.e. crash), but they need to avoid inflationary pressure from the stock market itself in order to continue to be able to lower rates to try and save housing. No easy trick!
More cuts are certainly on the way, but the Fed must make sure the stock market doesn't party based on that. It's no coincidence we've been selling off since the day after the Fed sent the message that they might not be lowering. Oooohhhhh....so scary! lol. Total BS. Expect another 1% within the next 6 months. In addition, expect government bailouts of lenders and borrowers. Once again the public will pay for the recklessness of Wall St.
The government will take care of everything and everyone. Right? :(