Will the fed cut rates yet again?

[rkahn]

Last month englishman26 set up a great poll asking forum users what they thought the Fed would do with interest rates. I feel we ought to do this again...


What will the Fed do on Halloween, what will the short-term & long-term effect be, and how are you preparing?

1. The Fed will raise rates
2. The Fed will keep rates the same
3. The Fed will cut rates by 0.25%
4. The Fed will cut rates by 0.50%

[englishman26]

A ghoulishy scary 0.5% drop as they worry about slowing growth in the US economy, and try in vain to bail the wall street banks and the housing market out of the mess they're in - even though they really can't.

I've been in the gold ETF for a couple of months now (in my l/t account) and I expect to steadily profit from this as the fed slowly sinks the dollar. Oil this has some way to go but could correct hard at some point in the next two months.

Even with this cutting, it's still not time to buy the financials (other than perhaps GS) and still certainly not time to buy the mortgage or housing companies - although all might be good day trades this week. GLTA.

[aiki14]

Even with this cutting, it's still not time to buy the financials (other than perhaps GS) and still certainly not time to buy the mortgage or housing companies - although all might be good day trades this week. GLTA.

You buy GS here for the trading income they always seem to make from being on the right side of everything, the rest of the sector is radioactive. And the mortgage and housing stuff is a crap shoot going into the FOMC decision and the volatility doesn't justify options positions.
I guess that's a bearish sentiment on that. Just my opinion.

[TonyM]

I'm hoping for a 50 bp cut for purely personal reasons, I need the UK pound exchange rate as high as possible...$2.06 today, looking better all the time.

After I conclude my business I'll be back in the camp of wanting the dollar devaluation to cease and reverse, I probably won't get to eat my cake as well, but one out of two ain't bad...as long as I spend at least the difference before inflation negates it.;)

[freakscene]

Is it possible the dollar can be worth less than it is now?

My amateur vote goes to leaving rates the same.