I just received word from my Fed source, Madame Schlotzky the clairvoyant, that Ben Bernanke will lower interest rates tomorrow by 0.25%. This is absolutely confirmed. Madame said her pet iguana, Raul, vomited up a fruit fly last night at precisely midnight, and that this usually means a quarter-point lowering is afoot... or that he requires a small thimbleful of Mylanta in order to resume his nightly slumber.
Anyhoo...
While the rest of Wall Street wonders how the Fed will move, if at all, we can already take solace in the fact that the S&P 500 is in for a very nice three-month rally in the wake of tomorrow's Fed announcement...
Further mindless predicitions...
We'll see continued volatility for another week and a half as the markets adjust to the new rate... Then a small dip... then a long, steady, two month rally starting in early October and lasting perhaps through the rest of the year.
Best,
James
Monday, September 17, 2007
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