May 10 2007
Wall Street regained its stride Wednesday after the Federal Reserve told investors what they expected to hear – that inflation is still too high for comfort, but the central bank is holding interest rates steady.
The central bank’s Open Market Committee as anticipated left interest rates unchanged at 5.25 percent, as it has done since last summer. The statement that accompanied the decision was little changed from the one the Fed released after its last meeting in March; the assessment said policy makers are keeping their inflation watch the priority despite a slower economy.
Though some investors were hoping the Fed would raise the 
possibility of a future rate cut, they weren’t surprised by the committee’s stance. Moreover, they were relieved to hear the Fed is not more inclined than it has been to raise rates, a move that would make access to capital more expensive and potentially hurt the stock market.
possibility of a future rate cut, they weren’t surprised by the committee’s stance. Moreover, they were relieved to hear the Fed is not more inclined than it has been to raise rates, a move that would make access to capital more expensive and potentially hurt the stock market.While the Dow Jones industrials rose to another record close, so do my lovely Apple Inc.’s (Nasdaq: AAPL, stock) stocks, I mean option. It’s not everyday that you get to see your stock hitting multi-year high and keep on going up. When will I close the position? When it doesn’t goes up anymore and establishes a strong support. But with iPhone coming into the picture soon, it’s hard to blame investors to be excited about the prospect of this most-admired company.
But then there’s already a saying on the wall that in the next four years, well before the 2012 presidential election, professional investors might see the largest stock market in the world advances as much as 60% higher, to 21,000. It is said to be possible because the 21,000 is achievable by a mere 10% compounding growth. Well, let’s hope there would be no surprises for the next couple of years and should this 21,000 mark is achieve, chances are most of the global stock market will definitely enjoy the same fruits. It’s nice to see everyone is happily making money.
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May 10th, 2007 by financetwitter
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