Friday, March 7, 2008

And the good news is...

If you can take the pain, stay in it.  I quite honestly question it myself VERY frequently, but with the jobs number that came out this morning, it truly puts the Fed in a corner and as opposed to taking the hard line and not cutting rates (which according to some was fairly likely) they no longer have much of a choice based upon the current employment situation.  They will likely cut as the equities markets have priced in and this will continue to devalue the dollar making the price of American commodities cheaper to foreign buyers.  From here it doesn't take much of a leap to realize that increased buying (demand) in the face of continued limited supply will steadily cause a price increase.  It is often nice to have some solid fundamentals behind the upswing in price we've been experiencing, aside from the current correction of course. 

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