Asian markets dropped on the news of the Fed's adjustment to the discount rate, but North American traders may want to prove their more independent spirit on the pretext that the market had already "discounted" the Fed’s move and that it is no big deal.
Dr. Julie Peterson-Manz reviews the Around The Horn stock action for February 17, and presents trade ideas that still have the possibility of triggering for February 18.
The chart for SPY is indicative of a lack of conviction on the part of equity investors in the recent rebound from the selling that began in mid-January.
How did the '70s period end? Inflation increased and the Dow sank. It didn’t hit its final low until August 1982. But at that point, stocks were undeniably cheap. You could buy the Dow for about 5 times earnings.
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