[The once and future king]

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Perhaps you should think in real terms nominal terms. Sure the market went up on the 50bp, but the dollars it was price in lost a huge amount of value. Nominal, not real, gain.

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Yea but I am talking about price action.

Or are you suggesting that upward trends are a calculated attempts by markets to compensate for the loss of value in the dollar that any fed cut will cause?

Roughly estimating on the fly (I could look it up but I cant be far out)I would say the DJI has gained about 9% in the last year. Its gone from circa 12200 to 13300 reaching 14200+ on the way (after the credit crunch started) so dollars in the DJI will have retained value much better than dollars kept under the mattress or in a standard saving bank account. That 9% is also alot bigger than CPI (CPI LOL).

I see entirely the point you are making, but it is not relevant to my arguement. I am rejecting the point that Equity markets react via price action to events in the real economy by stating that the price action (in recent history) is mostly motivated by events in currency manipulation.