Monday, December 10, 2007

Two Words on the Market this week: Cautious Enthusiasm

It's coming.

Not Christmas, Santa Claus, or even the Easter Bunny.

This is much bigger.

On Tuesday, the Fed is set to announce its decision on interest rates. The question for the last week has been of "How much?". Most of would say 25bps would be on target, while 50bps would show the Fed trying to get ahead of the market.

After last Friday's excellent job data, there is less of a chance for a 50bps cut.

So what are the plays for the week? I think regardless of what level of a cut, the market will have a positive bounce for the week. I am still a huge fan of high-tech, as well as retailers, and even banks for the long run.

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