Markets sold off as the Feds gave no indication they are done raising rates. That posture, in the face of slowing economic numbers, is puzzling. Equities reacted sharply and money fled to bonds. Not quite what Greenspan had in mind, as the ten year note settled comfortably below 4%. What a surprise: the bond market does not agree with him. The markets wanted something in the language implying a neutral stance in the near future. It did not get its wish and the quarter ended with the DOW off almost 400 points from its June high. Earnings are up next and there should be plenty of volatility. Great trades ahead.
This entry was posted
on Thursday, June 30, 2005 at 3:52 PM.
