Stock investors are apt to be in for a rude awakening after the 50 bps rate cut from teh Fed on Jan 30 2008. Unlike the first rate cut on Sept 18 2007 when market participants believed the fed to be ahead of the curve, no longer do so. Hence, that risk coupled with credit rating downgrades and recession like data suggest the stock market will be stress tested and heighten fears amongst investors.
Article
Market Participants should prepare for a Stress Test in the Stock Market after the 50 bp rate cut of Jan 30 08
Posted, by FinancialFutures on January 30th, 2008
Authored by, FinancialFutures
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