That goes for everyone. How is it that we believe Wall Street has a mind of its own and that it must be satisified in order to bring the economy back to pre-recession days. If a child were to act this emotional they would be looked at like a spoiled brat throwing temper tamprums. How is lowering the interst by by 3/4 points going to help the average american begin making more purchases off-credit when they still live in fear of losing their home, paying for healthcare and trying to keep their gas tank full? It can't as proven by today's U.S. futures and the European indexes. Although the Heng Seng rose over 2000 points that was b/c it hasn't had a chance to react to the Fed decision and the recent earnings report.
So what does this mean, I think IMHO it means to start holding on to some cash and get smart on some of this years potential profit makers. The Visa IPO is scheduled for this year. This needs to be watched as the number of late payments across 30, 60 and 90 days increases. Then there are some tech stocks of some companies that I grew up with, namely the following
MySQL - Widely used open-source database.
Ingres - Currently profitable looking at a mid-year IPO
SugarCRM - Again profitable
ExactTarget Profitable
Parallels – Server virtualization software and a VMW Competitor targeting the Small and Medium Business
So my strategy is to close some positions and place that money into a high-yield savings account. This money will be marked for taking advantage of one or more of these IPO's.
Additonally I am beefing up my PBW ETF holdings in my belief in the need for alternative energies and to keep a look at companies that may profit from the "green-jobs" being touted by the current Presidential candidates.
Remeber don't by a stock on the way down. Look for the indicators that show a greater probability of floors being hit and buy the rebound. IBD top 100 is a good start.
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