by Thomas Mullooly on July 31, 2008
“Mr. Valentine has set the price!”
Or, in this case Mr. Bernanke sets the price.
This week the Federal Reserve announced that the “open spigot” of money available to investment banks will be closing January 30, 2009. This is six months away.
What this means is that the access to cash will be closing. What this means to you is financial stocks — particularly the bigger banks and brokerage firms — might either be putting a bottom in place, or falling off the cliff in the coming weeks or months. And while we’ve avoided financial stocks for the past year-plus, the financial sector still remains one of the largest cogs in the S&P 500. So, it could be a turning point. We’ll see. [click to continue…]
Federal Reserve closing the spigot
by Thomas Mullooly on July 31, 2008
“Mr. Valentine has set the price!”
Or, in this case Mr. Bernanke sets the price.
This week the Federal Reserve announced that the “open spigot” of money available to investment banks will be closing January 30, 2009. This is six months away.
What this means is that the access to cash will be closing. What this means to you is financial stocks — particularly the bigger banks and brokerage firms — might either be putting a bottom in place, or falling off the cliff in the coming weeks or months. And while we’ve avoided financial stocks for the past year-plus, the financial sector still remains one of the largest cogs in the S&P 500. So, it could be a turning point. We’ll see. [click to continue…]
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