The market started out well today, and then dropped in the last hours on a government energy report with a startling revelation. It said that if energy prices rise, the economy will suffer. Wow, thank you, Energy Secretary Sam Bodman. But he's not really to blame. All he did was state the obvious, and the herd bolted.
Stocks had shown signs of stabilizing after suffering nearly two weeks of declines as the market fretted about interest rates and the economy's health. But investors clearly were still nervous about keeping money in the market while they remained uncertain about the Federal Reserve's plan for lending rates. Full Story
I am still awed at how the Markets react to news. If we WERE certain about the Fed's plan for lending rates, how would today have gone any different? What would the Dow be doing this week if Ben Bernanke actually publicly stated the future Fed Funds rates for the rest of this year? What would happen if I manage to complete a post without mentioning 'energy' or the 'Fed'?