Monday, October 29, 2007

Here Fed, Fed, Fed...

Show me that rate cut!!

The markets are up a bit, but now the market has completely priced in a 25bps cut, which is what worries me. Once the market believes one way, and what is expected doesn't happen, there will be a HUGE drop. Conversely, if it does happen, the market will move a little bit.

This is a simple situation where the risk is high and the reward is low; a situation that is completely out of whack.

I am hoping for the best, but bracing for the worst tomorrow.

PS - End of the month is coming, and this month should see my networth move quite significantly, thanks to vacation time buyout from the old company, and sign-on bonus at the new company.

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