The Intergalactic Cowboy

Today, Federal Reserve Chairman, Ben Bernanke, tilted the investment world on its axis by insinuating that the Federal Reserve Bank might be cutting interest rates in the near future. This announcement was made at 2:15 pm this afternoon. It took the markets about ten minutes to believe what they might have just heard and then they took off with a rally of buying that has not been seen since the last media hyped speculation, one week ago. I was dozing in an easy chair until the realization dawned on me that some short term money could be made over the next week as a result of this. I rushed to the computer and re-bought a stock that I sold the week before Stage One of the market correction. My reasoning is as follows. Mutual funds are judged according to what percentage they have increased in value as of the last day of the quarter, which would be March 30th.  I would assume that hedge funds are judged the same way, but I do not know how to find out what the performance of a hedge fund is. I believe that the above mentioned fund managers will use this speculation on potentially lower interest rates to artificially pump up the values of their funds between now and March 30th so that their funds’ performance will look good on paper for the first quarter of 2007. They can do this by buying up the stock of any companies that are positioned for profit growth this year. I plan to sell the stock that I bought today on March 30th at 3:45 pm so as to take the short term profit before the next business day, which will be Monday, April 2nd.  I then believe that Stage Two of the correction will be engineered to take place between April 2nd and the next Fed meeting which will be May 2nd. (I think) It is possible that the Fed will actually lower interest rates on May 2nd, which will make a correction in the stock market practically impossible for several months after that, because an inevitable rally will occur after an interest rate reduction or two.  If the correction takes place before May 2nd, the starting point of the rally will be at a lower price level and the subsequent gains from the rally will be greater. This devious manipulation of the retirement monies of the hard working people of this country can only be achieved with the cooperation of the media and the fed chairman. The media will have to focus on the positive financial news only for the next week and the fed chairman will have to keep his mouth shut for at least a week. Mr. Bernanke has a habit of making a positive statement on one day and then saying on the next day that his comments were misconstrued.

The drama continues,

I.C.