Wednesday, October 29, 2008

Maybe You're Pregnant

The day after.

Today is an important day for the market.

Yesterday's majestic move higher could have been the sign that it's OK to get back in the water. After all, stock are way undersold, interest rates are still low, house price declines may be decelerating, lots of smart people are saying to buy stocks now.

If however, today we give back a big chunk of yesterday's gains, we are pretty much where we were a few days ago. Don't forget that a slow move higher is healthier anyway.

All that being said, the Fed will make a move on rates this afternoon which will thoroughly confuse things. I recommend taking the rest of the week off.

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