Finance expert George Brooks talks about the Fed’s latest move and why it’s not necessarily a bad thing.
“The Fed raised the discount rate it charges on loans to banks 25 basis points to 0.75% yesterday after the close. Bank stocks dropped in reaction to the news.
The Fed’s action is viewed on the Street as more of a “normalization” move, than change in policy.
The major market averages have recouped about two-thirds of the market’s 9% plunge between January 14 to February 5, so some consolidation is warranted – a pause that refreshes, if you will.
Nevertheless, unless the institutions with their trillions of dollars walk away, the bull market is very much alive. What, could have been a sharp correction today in early trading, mostly as a result of a misunderstanding of what the Fed did, could end up with a run up to DJIA 10,495 (1118 for the S&P 500)…”
To continue reading this post and to read more of George Brooks’ Market Blog, click here.
About George Brooks:
George Brooks started in the investment business as a stock broker in 1962 and quickly gravitated to the research end of the business, first undertaking his own vast study of fundamental and technical analysis, then taking a position as director of stock market and economic studies for a leading money manager and publisher. In 1973, he formed his own firm to provide daily market timing and stock selections for two regional NYSE member firms, as well as special situation research and written analysis for leading investment advisory publications.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription to EQUITIES Magazine
