|
| CNBC always gives me a chuckle, but none more than today. This is the current headline on their site.
"Wall Street Now Betting On Another 3/4 Point Rate Cut"
The Dow was down 300 at one time and has rallied all the way back to +200. What a game! They said there is about an 80% chance that the FED will lower by another 3/4% when they meet. 1.5% in two weeks? My personal advice is to let these banks figure their own way out of the mess they created.
One good thing... I just bought a farm right next to my house. (At least my interest rate will be going down)
On the commodity side, I would say that this selling is way overdone, but the problem is that the buying was way overdone to get us to this point. I personally think more profits will be taken. I'm looking for Dec 08 to revisit the 4.20 - 4.30 range. This is just a guess. At that point I might even buy a few new crop HTA's back to ride through the acreage and weather events that will be on us before we know it.
One other interesting tidbit: I went to a Cargill sponsored "Pro-Pricing" meeting in early December. Dec corn was in the 4.30's at this time. The guy who trades all of the corn for this Cargill program was looking to buy corn back at the $3.90 mark. He didn't quite expect the $1 rally either.
Edited by Illinoisfan 1/23/2008 16:00
| |
|
Interesting Headline
