The Circus Comes To Town
again, I’m going to lose it.
With the hopes and dreams of technology-bubble worshippers
dashed this week by the overwhelming ineptitude of CSCO’s
John Chambers, and with Big Lou’s clear unwillingness to
address IBM’s future, all eyes now turn to the Main Event,
coming next week to a television near you. The giant FOMC
three-ring circus is about to take center stage and tickle
the imagination of every poor soul who believes that you can
play on the side of the Fed and trade your way to riches.
the FOMC meeting on Tuesday, you can throw your charts and
technical analysis out the window.”
Yes,
folks, just as Herbert Hoover promised a chicken in every
pot, our new-economy Federal Reserve is virtually promising
a new PC in every home and an SUV in every driveway. And
just like that, we find ourselves once again pontificating
the Fed fairy tale that we’ve all been made to blindly
believe: “Don’t fight the Fed.”
But can it be that easy? Is this really the Holy Grail to
stock-market profits? Can we really just buy stocks
fearlessly, like we did in 1999, and watch them go up just
because the Federal Reserve is cutting rates? History says
we can, but this period is unlike any other period in
history, because in this particular instance, we are coming
off the hugest financial bubble in the history of financial
markets. Yes, for those who have yet to admit to this
reality, it’s OK. Just take your time and sound it out …
b-u-b-b-l-e.
So as Alan Soprano and his Capos have essentially
strong-armed America into spending whatever money it had
left after expenses in April —