Two Ways To Play: In an FOMC Minute
Strengthen your portfolio in good times and bad.
The Federal Open Market Committee's December 16 meeting minutes were released today. According to the New York Times, they reveal that committee members remain concerned that interest-rate cuts and other measures aren't enough to counter the nation's economic woes.
"Even with the additional use of non-traditional policies, the economic outlook would remain weak for a time and the downside risks to economic activity would be substantial," Fed officials admitted during the proceedings.
About the meeting's somber mood, one economist wrote that the "overwhelming message is one of fear - fear of a deep recession and fear of a debilitating deflationary spiral that would capsize a debt-laden economy."
Professor Kevin Depew talked about the Fed's language in yesterday's Five Things You Need To Know.
From the Bull Pen: Bulls can still consider plays in gold such as the Gold ETF (GLD). A sell stop can be set near $83-$84 in the near term.
From the Bear Cave: Bears might be eyeing the luxury retailers again. Some could view Coach (COH) near $25 as a decent risk/reward opportunity on the short side. If and when it reaches that level.
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