Well there you go. Big Ben & Co. dropped the rate another 50 basis points this week. That’s 125 basis points in 8 days!

I fully expected this rate cut, and the markets seemed to expect it as well.  As the week continued to progress, the market continued to respond nicely - even ending up on Friday!

So far, it appears that we have hit a temporary bottom.  It is quite possible if the fed continues to cut rates aggressively that we will have a stellar year in the stock market.

Of course that all remains to be seen as the fed doesn’t meet again until March.  Until then, I think that the market will continue to perform well as the economic data continues to roll in.  The 4th quarter showed very moderate growth - still not negative so no recession yet!

Categories: Investing