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View Poll Results: Action
Call 30 63.83%
Re-raise to 300 14 29.79%
Push 3 6.38%
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  #11  
Old 09-14-2007, 06:44 PM
FieryJustice FieryJustice is offline
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Default Re: Official - Will The Fed Cut Rates? on 9/18 Discussion

Ok, I am a fish. I was talking to a guy at the poker table today that seemed semiwell vesred in this and he was talking about buying up a lot of pepsi stock, with the intention of holding it for a long time, assuming they cut the rates. I was wondering what is the point of this? Are most of the stocks expected to take a downward turn if the rates go down? Any other elaboration about this would be appreciated.
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  #12  
Old 09-14-2007, 07:53 PM
Korch Korch is offline
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Default market says:

rougly 12% of nothing, ~43% 25% cut, and ~45% of 50bp cut.
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  #13  
Old 09-15-2007, 01:25 PM
James282 James282 is offline
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Default Re: Official - Will The Fed Cut Rates? on 9/18 Discussion

[ QUOTE ]
Ok, I am a fish. I was talking to a guy at the poker table today that seemed semiwell vesred in this and he was talking about buying up a lot of pepsi stock, with the intention of holding it for a long time, assuming they cut the rates. I was wondering what is the point of this? Are most of the stocks expected to take a downward turn if the rates go down? Any other elaboration about this would be appreciated.

[/ QUOTE ]

If rates are cut, stocks will hold steady or go up, in all likelihood.

James
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  #14  
Old 09-15-2007, 01:33 PM
DcifrThs DcifrThs is offline
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Default Re: Official - Will The Fed Cut Rates? on 9/18 Discussion

[ QUOTE ]
[ QUOTE ]
Ok, I am a fish. I was talking to a guy at the poker table today that seemed semiwell vesred in this and he was talking about buying up a lot of pepsi stock, with the intention of holding it for a long time, assuming they cut the rates. I was wondering what is the point of this? Are most of the stocks expected to take a downward turn if the rates go down? Any other elaboration about this would be appreciated.

[/ QUOTE ]

If rates are cut, stocks will hold steady or go up, in all likelihood.

James

[/ QUOTE ]

not exactly.

if the market is pricing in >25bps of cuts (which it is...or at least was last week) and the fed cuts 25bps, the equity market could fall as the cut would be less than expected.

it may just hold as it shows the fed is willing to do "something" to mitigate forthcoming negative effects on the real economy. so depending on the size of hte cut, markets could go up, down, or sideways [img]/images/graemlins/wink.gif[/img]

Barron
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  #15  
Old 09-15-2007, 02:36 PM
Fishhead24 Fishhead24 is offline
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Default Re: Official - Will The Fed Cut Rates? on 9/18 Discussion

They will definetly cut rates.......the question is how much.
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  #16  
Old 09-15-2007, 05:47 PM
Ray Zee Ray Zee is offline
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Default Re: Official - Will The Fed Cut Rates? on 9/18 Discussion

probably 25 points but whether 25, 50 or none it shouldnt matter that much going out a ways. it is only a bandaid what they do right now.
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  #17  
Old 09-15-2007, 10:26 PM
Fishhead24 Fishhead24 is offline
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Default Re: Official - Will The Fed Cut Rates? on 9/18 Discussion

[ QUOTE ]
probably 25 points but whether 25, 50 or none it shouldnt matter that much going out a ways. it is only a bandaid what they do right now.

[/ QUOTE ]

Your exactly right..........
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  #18  
Old 09-16-2007, 12:36 PM
Jimbo Jimbo is offline
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Default Re: Official - Will The Fed Cut Rates? on 9/18 Discussion

I suspect it will be the expected 25 bps cut but what may prove to be more important is the bias of their forward looking statement. Hopefully the Fed will retain a neutral bias, the market will dislike this very much, my puts will increase in value then two days later the market will accept the facts and resume it's bull run.

Well no harm in hoping for the perfect outcome is there?

Jimbo
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  #19  
Old 09-18-2007, 07:41 AM
Slow Play Ray Slow Play Ray is offline
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Default Re: Official - Will The Fed Cut Rates? on 9/18 Discussion

I have what is quite possibly a ridiculously noob question for this discussion, and for that I apologize in advance...

I am buying a house, and after much bartering with two different companies, just locked a 30-year fixed mortgage at 6.25% on Friday. How much better could I have conceivably gotten if I waited until after the cut (assuming they cut it .25 as widely anticipated)?
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  #20  
Old 09-18-2007, 08:56 AM
SteveOMS SteveOMS is offline
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Default Re: Official - Will The Fed Cut Rates? on 9/18 Discussion

Mortgage rates don't normally move that fast after a fed cut. It takes a few months to trickle down.

Steve
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