Two Ways To Play: Market Instability a Golden Opportunity?
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House Financial Services Committee Chairman Barney Frank said the Treasury will likely run a program that would involve buying distressed assets to cleanse banks' balance sheets.
In a press conference, Treasury Secretary Hank Paulson said the move would need to be big: "We're talking hundreds of billions… This needs to be big enough to make a real difference and get to the heart of the problem."
Further, to insure money-market mutual fund holdings, the Treasury tapped all $50 billion in the country's Exchange Stabilization Fund, while the Federal Reserve expanded lending to commercial banks.
From the Bull Pen: Smells like gold to me. Any wonder why crude oil shot up $6? The shift seems to be for assets that are real. Bulls can consider ASA (ASA) with a sell stop below $55. It's been mentioned on the Buzz, but for those unfamiliar, this is a closed-end fund of primarily gold miners.
From the Bear Cave: We've talked about the headwinds the consumers will face and the picture looks increasingly bleak. Bears can consider downside plays in stocks like Coach (COH) with a stop above $31 or $32.
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