Interest Rate Cut .25% Today, Future Market Outlook?

Stocktrading101 · #1 (**permalink**) 10-31-07, 04:05 PM

So the Fed does what is expected and cuts rates .25% and naturally the market is up having another strong day.

As we all know though no more rate cuts are expected for some time, so what does this mean going forward? Is this party going to fizzle out later this year or what?

StockJunkie · #2 (**permalink**) 10-31-07, 04:13 PM

I see a lot of strength moving forward as that is what the market is showing, but long term I remain skeptical. Rather react then try and predict the future I say.

The NASDAQ is loking to close at highs not seen since January 2001!

Fredledingue · #3 (**permalink**) 11-01-07, 08:52 PM

The market didn't wait the end of the year for quiting partying.DJ: -360 today. Bank stocks took a hit as never before.I'm not worried. Rate cuts will make their effect and home/credit worries are less influencial than two months ago.Long term, the market will be strong. especialy during the year before the elections.

Airelon · #4 (**permalink**) 11-01-07, 11:18 PM

Interesting day to say the least. It was sort of weird. I'm sitting there listening to a shareholders presentation that was pretty optimistic on a stock with a P/E of only 11, watching the market plummet.

Like Fred, I'm optimistic, though I'm not sure how much longer we can keep this up. Or, we're going in a sideways channel for the market overall (if that's the case, it might be the time to sell options and collect theta premium). Worst case scenario - we just quietly entered a bear market.

Actually, I guess you could sum up my outlook by stating I'm a:

Short-term (next 3 months): Bull, looking to cautiously buy at bargain prices.

Mid-term (4 to 6 months out): Very cautious Bull. Awaiting signs of a sideways channel.

Long-term: (6+ months) Leaning towards the possibility for entering a bear market. Not a "gold bug" ninny. Just cautious and readjusting my portfolio and outlook to profit in case this happens. Just some pullback may occur, and want to be ready if it does. Now might be a good time to buy into those greenbacks. Hedge any stock market holdings with a Bond ETF or two. Well, technically not a hedge, as bonds are never a bad idea to have.