Just when I thought I had the stock market figured out, well, yesterday happened.
When it was hinted that another rate drop was coming from the fed, there was much rejoicing and the markets went up.
When they cut the rate last month, things went up. Okay, I see a trend. Rate cuts hurt the savers, but makes the markets go up. A lightbulb went on for me. I’ve got a pretty good grip on how that works now.
But yesterday, they cut rates, and the markets went down. Way down. Personally, it hit me with a $1300 loss.
Apparently the rate cut they wanted (and received) wasn’t good enough. “Oh, I’m sorry, we should have cut it more than we did…”
Maybe I’m out of line here, but as far as I’m concerned, that’s just greedy.
In essense, investors took their ball and went home. Sigh…
That’s OK, I say let them take their ball.
The harsh reality is that if the market is looking to the Fed to keep the bull market alive, the bull market won’t last much longer. It tells me that the financials of major companies are no longer strong enough to offset the bad economic news coming out.
-Grant
[…] « American Greed in the Markets? […]