Fed Funds Rate Cut & Inflation

Folks, as we all know that stocks today marked the biggest gain of the year, followed by the half point rate cut by Mr Bernie. However, the biggest question which still remains on the table, Are we getting closer to an economic slowdown? Some of things to watch for are the price of commodities such as Gold & Oil. Dollar is declining steadily this year, which would also put pressure on inflation. From my understanding of the market, today's rate cut was much needed by the housing sector, specially it will be a relief for people with ARM mortgages, and whose interest rate payments were just about to be revised. But, given that the rate cuts can only be a short term fix, I am now more skeptical about the growth of the US economy in the coming few years.

So the open question on the table now is whether to:-
1.) Invest in commodities and hedge against inflation
2.) Invest in stocks with less US exposure
3.) Invest in housing and provide liquidity to the gloomy housing market :)
4.) Probably just sit back and relax and enjoy the ride.

I am sure we all have our views and answers, and surely all of you have some insights into the market as well. So please bring your ideas on to the table. Thanks

Sumit

First Steps.

As a first step, I would recommend you to open an online trading account with TD Ameritrade or any other online trading company of your choice. I will not recommend margin accounts. Trading account comes with lot of tools, which help you making investment decisions.

You can be a day trader or a long-term investor. I will not recommend day trading, but just to get the feel of street you may want to do day trading once. It like just jump on the street and then step back.

Other then that CNN Money and yahoo finance offer good resources. You can also start with maintain a virtual portfolio based on the research and can test your self how well you anticipated based on your research.

Testing!

I've invited 3 friends who have shown interest to contribute to this blog. I'll start on some topic tomorrow...but first let me know if its working for you guys and what the issues are if anything, related to posting etc. I'd need to work around the template.

Preeti