Curse, condemn, criticize, slam or burn the flag as much as you like but it appears United States is perhaps the most democratic country you’ve ever seen, for the time being. At least the investors and people get to study the “minutes” of Federal Reserve’s meeting and I can’t possibly think of any country that did the same thing in the name of transparency, at least not in Malaysia. While the U.S. government believes it’s important and necessary to disclose the contents and be open about the economy data and vital meeting’s minutes, other countries think otherwise.

It was reported that Wall Street advanced 120 points on Tuesday because the investors interpreted minutes from the Federal Reserve’s last meeting as indicating the central bank is ready to keep cutting interest rates to boost the economy. The minutes from the Federal Open Market Committee’s Sept. 18 meeting among others stated that while officials were concerned that the weakness in the dollar could lead to higher inflation, it also said the economic outlook was uncertain because of the credit crisis and that there were still risks to growth that justified lower rates.

Such disclosure was enough to push the Dow up by 120.80 points, or 0.86 percent, to 14,164.53, a new record high after the previous record close of 14,087.55 reached on Oct. 1. The S&P 500 rose 12.57, or 0.81 percent, also to a record close of 1,565.15 after it surpassed the previous record close of 1,557.59, reached last Friday. The Nasdaq composite index rose 16.54, or 0.59 percent, to 2,803.91 and this is the first time the technology-index closed above 2,800 since January 2001.

Okay, I know I had sold off *kick myself* my Apple Inc.’s Call Options when the stock was trading just below $160 per share and the stock was trading at $167 a share after Tuesday closing. I thought the $160 was a strong resistance but I guess that’s how you’re being played by the stocks market. You simply won’t know when the stock will surprise you. As long as you’ve made your profit and take the money off the table, there’s no reason to regret. At least I’m right about Google Inc. and it’s trading above $600 a share now *yip-pee!!*

Malaysian Central Bank didn’t follow Feds’ step in cutting the rate, in fact the central bank was almost in the mood of celebration as it meant their job in attracting foreign funds were made easy by simply “do nothing”. The U.S. dollar was instantly hit with the recently announced rate cut and this prompted investors to take their money elsewhere, including Malaysia although the quantum is not known.

Other Articles That May Interest You …

• GOOGLE’s stock price zoomed above $600 finally
• Made Money from two Apples, 134 and 52 Percent Profit
• Rate Cut, Financial Expectation & Window Dressing

Tweet

October 10th, 2007 by financetwitter

If you enjoyed this post, what shall you do next? Consider: