vivek04

Keep Buying the Dips
Dear Investor,

No doubt the Fed is relieved to see a little strength in prices, as overall, prices have dropped 3.7% over the last 12 months. The only thing that scares the Fed more than inflation is deflation.
My question is: at what point do rising prices motivate the Fed to start sopping up the flood of liquidity it has released over the last eight months? Clearly, there will have to be stronger signs of recovery, but with the potential for full employment numbers to be higher than they've historically been, I can't help but be concerned that the Fed will follow the Greenspan model and act too late.
So in examining large drop, it appears we should see a quick recovery and a new high around $16 a share over the next 4-6 days. Will this be the high that we take profits on?
You'll have to stay tuned…