Let’s look at the score card day two…
a. Stocks gained back about 2/3 of the major losses on Monday. But it was far from a straight line. Started up, down after the Fed announcement and then came roaring back.
b. Rates were lower again. Certainly, it does not look like the Fed will be raising them anytime soon.
c. Gold up. Sounds like a broken record. Well, a broken record every day.
d. Oil down. Actually broke the $80 barrier.
The Fed really keeps things interesting putting its cards on the table. No rate increases for about two years. Did they tip their hand. The bad news is that they think there will be no recovery for two years. By the way, the Fed is not always right. The good news? They are studying further actions. Additional purchase of assets? (QE III).
Meanwhile–expect refis to continue surging–the only question is, will purchases follow?