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  1. 0.00%

    Stocks rallied strongly after the Fed announced that they were cutting the Fed Funds rate to "a range of 0% to 0.25%." The C fund gained 5% on the news, while the S and I funds jumped an amazing 6% each.

    I am not an economist, so I don't know exactly how to interpret this. On the one hand, there is a phrase that you "don't fight the Fed", meaning if the Fed is cutting rates, don't bet against the stock market. Yesterday's rally proved that. On the other hand, many ...
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  2. FOMC Today

    After opening to the upside, stocks slowly moved downward all day yesterday, but a late 10-minute surge that started at about 3:30 ET, took the from 160-points down, back toward the break-even area before closing down "just" 65.



    Down 65-points almost feels like a break-even day lately. We have not seen too many double digit moves in the Dow, and now we've had two in a row. Stability or apprehension?
    ...
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  3. Buy and Hold is Dead?

    I'm sure everyone has heard in the media that buy and hold investing is dead. My definition of buy and hold would be defined as buying shares of GE today with plans of them financing my retirement. By that definition, I would not consider myself a buy and hold investor. Actually, by that definition I think it would be very difficult to find any buy and hold investors. I listed a few thoughts below which are not meant to be shots at anybody or any particular style of investing, but merely some of ...
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  4. Busy week ahead

    Stocks opened up deep in the red on Friday, but once again the market reversed and closed modestly higher. Does that mean another Monday morning rally? Maybe, but we have a busy week on tap and I expect we will see some volatile news generated swings.

    The market started down on Friday after the Senate could not pass a bailout plan for the auto industry. Later in the day, President Bush talked about possibly using TARP money to help, and the market seemed to embrace that suggestion. ...
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  5. Still Bullish

    Friday's action saw the intraday reversal I expected. While the volume on the upside has been light, so has the volume on the downside. The market is showing remarkable resilience. Sellers have been relatively reluctant and buyers cautious. So where are we?

    The VIX is still very elevated. The TED spread has fallen to about 191 basis points. The TED spread is now down 275 basis points in two months. The 2-year swap spread is up 2.95% to 104.75 basis points.

    The Libor-OIS ...
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S&P 500 (C fund)
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Dow Completion (S fund)
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EFA (I fund)
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Bonds (F fund)
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