1. Most Discussed
  2. Gainers & Losers

Fed interest rate

  1. Ed_Viser

    444 Posts.

    Hi
    The next 48 hours are almost crucial to financial markets because FED's rate decision due on Tuesday and certification on financial statements due on Wednesday.
    I'll take a risk to present my prediction about rate change 2 hours before it's release so when you wake up in the morning you would know whether I was right or wrong.
    My point of view is that Dr Greenspan leaves the rate unchanged because the economy is growing at 1.1 %, which is slower than expected, by still growing, and retails sales are up by 1.2%
    The effects of interest rate change would be known not before November so it is unlikely that Dr.Greenspan would back off from his up bitting predictions made 2 moths ago.
    If I'm wrong and interest rate is lowered than the market's reaction would be bullish but short-lived and vase-versa, if rate is unchanged the market would be punished but only for the next 3 days.

    It also makes me wander why two days before the due day only 154 out of about 990 executives certified financial statements. Is there any more bad news in store? Well, Ed thinks there is.

    My advice: stay away from the market before more clear view emerges.


    Ed

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.


HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.