Wednesday, October 3, 2007

Outlook on DOW record close

DOW closed to record high and NASDAQ scaled new peak in 6 1/2 years.

But caution is the key word now as the markets reacting too fast on expectations of further cut in interest rates. Economic improvement is some time away. Banks had done a good thing of writing-off mortgage related bad debts and thus cushioning the next quarter results.

My feeling is beware of this rally and this could fizzle out sometime in near future before december.

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