Dear Sheryl,
It was a tough day for Wall Street, with the Dow closing down just shy of 800 points. If you listen to the financial channels, you would think the sky is falling and that the yield curve may invert and trigger a recession. That's totally bogus. What's really happening is traders clearing out their inventory because global events are causing a lot of chaos. The good news is that as capital rates go lower, the Fed will be forced to not fight market rates and stop raising rates. So now the odds of an incredibly dovish FOMC statement in the next several days are much more likely. As we've talked about before, a dovish Fed is very bullish for the stock market. Despite today's big down day, there are a lot of good things happening. To keep you up to date, I recorded a Special Market Podcast to talk more about what's causing the market oscillations, the real key for the test of the market, and where I see the market turning next. You can listen to today's Special Market Podcast by clicking here. If you encounter any technical issues with playing the recording, please contact my customer service team, and they'd be happy to get you squared away. Sincerely, Louis Navellier
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