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- Hearts may swoon when stocks do, study suggests
(AP) March 14, 2010AP - Stock market slides may hurt more than your savings. New research suggests they might prompt heart attacks. Duke University researchers found a link between how a key stock index performed and how many heart attacks were treated at their North Carolina hospital shortly after the recession began in December 2007 through July 2009, when signs of recovery
- Wall Street faces Fed meeting with momentum
(AFP) March 13, 2010AFP - Wall Street stocks are set to build on nearly year-and-a-half highs as they face next week's key economic reports and the US Federal Reserve's monetary policy meeting.
- Data, Fed to test if rally has legs
(Reuters) March 13, 2010Reuters - Investors will try to tack another leg on to the year-long U.S. stock rally, looking to next week's economic data and statement from the central bank for evidence the recovery is still on track.
Stock Market Crash – Robert Prechter on Bloomberg – Oct. 19, 2007
By Admin on October 19, 2007
Why would anyone think that the Fed’s actions have any influence whatsoever on the trend in the stock market?
The Fed has similarly cut the discount rate twice in recent months, and on all occasions (Sept. 18, Oct. 31, Jan. 22, Jan. 30) the stock market immediately rallied… only to see prices give back those gains and more, within a few short days or weeks.
Mind you, these are recent and relatively minor instances. There are longer-term examples that unfolded for years, such as the Fed’s historic campaign in 2001-2002 that saw a DOZEN rate cuts, during which time the S&P 500 lost HALF of its value.
More dramatic still was the Bank of Japan’s campaign that took rates to virtually ZERO for entire decade, even as their Nikkei stock index declined and/or languished over the entire period.
There’s nothing new about this information — we’ve spelled it all out before, as recently as Bob Prechter’s Nov. 27 and Jan. 24 appearances on Bloomberg television.
With charts and facts, Bob showed how powerless the Fed really is; he also reminded the audience that “People should be careful of what they wish for when they ask for lower rates.”
Yes, the financial establishment labels Bob Prechter a contrarian. But, what does it say about that establishment’s state of mind when arguments based on facts and evidence make a person “contrary”?
VIDEO: Robert Prechter Videos on deflation
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