The bear market continues. Dow stock futures are down 455 points as I write. This is after a rally of about 75 Dow points. The plunge protection team has come up with an emergency 75 basis point interest rate cut (federal funds rate target) to fight the bear. Whatever short-term impact this has will be short-lived. Falling interest rates occur during bear markets, except for risky bonds whose risk premiums rise. Wait. Be patient. Bear markets take time to run. They do not suddenly change into bull markets. The major trend is still down.

The Best of Michael S. Rozeff