Implications of Feds raise the Fed. funds rate ?
supposedly that raises the rate surrounded by which banks will lend at ?Please give support to, I'm trying to learn almost the economy & politics !
Answers: In the United States, the "feed rate", or federal funds rate is the interest rate at which banks borrow money at the Federal Reserve or lend it to other bank.
What happens when the Fed lowers this rate?
Banks will own access to fresh money at a lower cost, meaning that they hold themselves more money available to lend out, and also at a lower cost. This is could for all participant in the reduction: industrial companies have it easier to find money to invest, mortgages move about down, etc.
As a result the economy will expand, craft more profit in the long residence. The stock market logically anticipates this and goes up.
On the other appendage, lending out dollars will return a lower interest rate than previously: the dollar goes down.
The implication and general consensus:
The Fed will cut rates roughly speaking another 50 bp [basis points] or 1/2%.
This is an election year. Both party want to keep the discount humming and the citizens happy. The ONLY ways to do that are to elapse the "stimulus package" AND cut interest rates.
I don't think rates will be raise until after our new prez is elected and take office in the order of a year from now.
Thanks for asking your Q! I enjoy answering it!
VTY,
Ron Berue
Yes, that is my tangible last describe!
The bank rate will be cut by 0.5% on Jan 30th to generate fed funds rate 3%
It will be 2% sometime contained by 2008.
For those who think they have a handle on the sub-prime crisis...learn just about CDO,s...CDO Squareds, Clo.s and other Credit Swaps,,,, The sub-prime mess is tame compare to the risk these are surrounded by and the effects of the financial markets.
Stocks trading ask... http://www.pitbullinvestor.com/ Anyone used it?
I am starting to make trades online... Has anyone used http://www.pitbullinvestor.com ??I hear it's a $60 program that supposedly help you pick stocks, as well as give indications when to buy, sell, etc.
Thanks contained by advance for your thoughts!
Answers: There is no shortcut to the stock pick. I resembling Chinese stocks and I get the index of Chinese Stocks from http://diggsamachar.com/chineseadrs . The Chinese ADRs have be giving good returns.
No, I haven't hear of it. Yet I know of another let me know if your intrested. The diffrence between the one you own listed and this one I own is that you learning and working near others 1 on 1 like a squad, with a coach. Leads to sucess- winner.
Is it possible to skillfully play the stock market or is it really all luck?
Answers: if you know what you are doing.. then yes..
if not... mutual funds is the way to go
there are ways...its called financial analytics...but you need a lot of muscle power to do that
however for individual long term investors, there is something called value based investment.
Yes, anyone can be a stock market expert. Many people can generate 2 to 3 did-git returns on their money every year. This shows it can't just be luck.
In fact all you need is to know a few simple rules and create your own trading strategy.
This website will help you with that.
When a trader does diligence ["research"] AND plans a trade according to the rules he/she sets up for that strategy, THEN follows the rules for that strategy, its skill.
To haphazardly follow "tips" and what others suggest without doing any research and without any plan, its really all luck.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
In my opinion it is not luck. Did Shaq have luck? Did Tiger Woods have good luck. No. They had excellent coaches/trainers to guide them where they are now. As Winners, who have success. Same in stock. For daytrade if you have the above and the capital, you'll be looking back at your question and saying, "no its not luck, it's knowledge." Once you learn that knowledge you'll be set, work as a team. E-mail me if you are intrested to learn more.