Internet Stock Trading - Interest Rates
FED Rate Cut Thoughts on CNBC Investos' Clininc
Some interesting thoughts on CNCB Investors’ Clinic
John Brady of MF Global
Thinks the FED will cut the funds rate by 25 basis points and the discount rate by 50 bp
He thinks a 50 bp would send a message of panic – some people may be woried about inflation effects – thinks FED will use other tools to combat seizng up of credit markets – problems emanate from previous low interest rate policy – longer term too many interest rate cuts may not solve problem
Guy Monson from Sarasin Investment Management
Thinks the FED will cut the funds rate by 50 basis points equity in houses is falling, which is why he thinks FED will be more aggressive
He also said things appear to be starting to normalize in the US –
His recommendations were to buy in the insurance sector – says it is a bit too early to be buying banks yet – at least for next 2 weeks recommended the ‘best’ banks without being specific
Also said there is value in metal and mining stocks - multi-year valuation lows – DOW most attractive market in the world – for supercap non-financial
In emerging markets – buy Western companies selling into Asia e.g. Cisco – also real-estate opportunities
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