I know we should not guess at future market trends because in the end we’ll be wrong about half of the time, and that make us feel like a nincompoop. Nevertheless, I want to start make some educated speculations and in the end, I will keep a record and see so how good I am at fortune telling, hence the new category of speculations.
The FED continuing efforts to lower rates is not enough to stop sub-prime crisis by iteself. What the market need is an internal industrial correction. The recent influx of major investors taken interests in badly beating financials will start a market momentum while easing off the sub-prime problem. We might see another quarter or two of losses from financials sectors, but with increases in numbers from new economic indicators and buyers starting to take advantage of bargains in the housing market and with the influences of the Chinese growth and its next year Olympic games anticipations, I believe the bull is getting ready to charge. My guess? before Xmas.