 |
|
| FOMC Outcome ... Sell the Stock Rally? (#1) - May. 3, 2005 |
|
Summary
Per the overwhelming expectation, the Federal Open Market Committee today announced its decision to increase the target rate on federal funds by 25 basis points, from 2.75% to 3.00%. As I assess it, the post-meeting statement did contain one important shift, albeit a subtle one. Sell any rally in stocks?
_____
I want to take the necessary time to write a more thorough analysis of today's FOMC decision and statement accompanying it. I'll have this out by tomorrow morning. In the meantime, though, I'll make this quick observation.
There was a slight shift in the FOMC's statement, one that stock bulls will try to run with. But overall, it is a small bone the FOMC threw to the stock market, one that is not likely to sustain a major rally. Therefore, if you feel overexposed in stocks and underexposed in cash, I would sell the rally in progress as this is being written.
_____
|
|
|
|
|
|