Bending the Third Rail
Because We Should, We Can, We Do
Sunday, April 23, 2006
Stocks Watch
There's some conventional wisdom floating around about the stock market's behavior relative to the Federal Reserve decisions on interest rates. Specifically, it's felt that when the Fed stops raising rates, stocks will party and go up through the roof. In fact, when some evidence that the Fed may be finished raising interest rates came out last week, the market had the best day of the year.

Our friend Barry at The Big Picture, as usual, sheds the proper light on the subject:


Click to enlarge, blogger is being mean this am.

Hmmm.

Looks like a bit of initial enthusiasm followed by a whole lot of loss.

I'm not broker and certainly not a stock expert. But given that this "boom" (and I use that term loosely) is long in the tooth, energy prices are through the roof, and interest rates are up, I suspect we're nearing the end of the recent bull cycle.

But then, if I really knew anything I'd be a rich man.
Written at 9:26 AM by Greyhair.
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