If Hedge Fund can bring down Bear Stearns to worth merely current US$2per share (highest was US$ 170) or $261 millions, why not other financial institutions? Look like Wall Street is turning into a graveyard zone soon!
Fed is doing his best to keep the credit crisis from declining with a series of Rate Cut or concerted Central Bank $$ injection to stem the current financial turmoil.
Will rate cut and $ injection able to steer fear among investors worldwide about other banks' similar exposure to the troubled credit markets?
Financial Storm has led investors to look into alternatives and pushed up :
1. GOLD - to the HIGHEST above US$1000
2. Crude Oil - above $100 (hedge against falling US$)
Tomorrow morning (19/3/08) will like to see FED Rate Cut again. The millionaire $$ question is how much? 0.25%, 0.5% or even 1%?
My view is that regardless what level of rate cut... BEAR WILL stage a Technical Rebound in response to it. However these rebounds may not be sustainable when subsequently when oversold stocks start to fully price-in rate-cut factor.
Remember CASH is KING now especially in BEAR MARKET.
Looking forward, avoid LONG in stock. Instead trade in Index CFD which profit could be obtain in both way.
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