Wednesday, January 23, 2008
What is going on!
First, the Fed lowered the Federal interest rate 75 points! What does this mean? If you have excellent credit you can borrow some cash for cheep. The problem is, people with excellent credit are not going to borrow money to go on a shopping spree during a recession.
Second, can you say volatility! The market was down yesterday over 400 points then gained 300 back. The markets were down today in early morning trading then came back to end the day almost 300 points ahead. By the way, the foreign markets are getting crushed.
Finally, Apple is in the dumps. Lower than expected forward looking guidance has driven the stock down into the 130's. Apple was the best story of 2007, but it does not look like it will continue. Apple is still a great company with tremendous potential, but this setback is going to take some time to recover from.
When all is said and done, I am not sure how to interpret all this activity. We are definitely headed for a recession (or already in one) and if you still don't believe that just ask big Ben. Hopefully we will hear something soon about the stimulus package that Bush is proposing. I am going to need that check to make up for all my losses over the past few weeks.