Monday, September 17, 2007
Markets health must still be fully sized
In reality, the financial turmoil might not be over. The decision of the Federal Reserve to cut the primary credit costs from 6.25% to 5.75% and the secondary credit from 6.75% to 6.25%, as well lengthening of the duration of funding out to thirty days, has offered some rest to the swinging markets. Nevertheless, more actions could be necessary, before investors will completely digest current unbalances and adjust to the new financial environment. Downside risks for stocks is still possible, while the thirty and ten years interest rates yields might challenge support levels.
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