Fed Chairman Ben Bernanke goosed up the market late last week by suggesting a big cut was in the works.
Not directly, of course. He can't just say what he means. But the hint was enough to push the market up 100 points or so.
"We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks," he said.
Then, the bottom fell out β again. The next day the market plummeted to fresh lows.
Unfortunately, the Fed is now very likely to significantly increase its purchases of Treasury securities, which would increase the monetary base. Wall Street has been begging for action that would lower short-term interest rates.
|
ETF Strategist Blows Away S&P 500 in
2007.
Get Our Top 2008 Picks Online
Now!
It's been a great year for
our new ETF Strategist service-and a very profitable one
for our subscribers. Since inception back in September
our portfolios are up +19.7% and +8.4% compared to a
LOSS of 5.9% for the S&P 500.
Our winners include
PowerShares DB Agriculture Fund +25.6%, and
ProShares Ultra Short Consumer Services Fund
+33.6%. PLUS, we have had just ONE losing position
since we launched. If we can make these types of profits
for our subscribers when the market is down, just
imagine what we can do when the market turns around.
Don't miss out.
Get in early on our top ETFs
for the New Year and, get our FREE 2008 Forecast Issue
online now! Go
here now.
| |
Well, here's what I have to say about that:
Go ahead, push the Fed to increase the monetary base, because one outcome is certain if the Fed follows the desperate advice of Wall Street's self-interested "experts."
What will happen next is, the exchange value of the U.S. dollar will fall and inflationary pressures will skyrocket. Gold prices, already breaking records, will continue to surge.
[Editor's Note: Seven Investments Poised to Soar in 2008]
But, I really don't care what the Fed does and neither should you, if you have subscribed to our new investment service β The ETF Strategist.
Why you ask? Because I've already identified several exchange-traded funds (ETFs) that I'm confident will generate handsome investment returns whether the Fed decides to significantly increase the monetary base or to maintain the money supply near its current level.
But, don't worry, there's also a way to profit from this type of supposedly "positive" economic development. Sign up for a risk-free trial subscription to The ETF Strategist. Go here now.
Editor's note:
The ETF Set to Soar the Most on a Bottoming Dollar. Find Out More.
Bernanke Punishing the Dollar. More Profits Ahead.
Why the Fed Interest Rate Cuts Won`t Work
