Yet another survey of the economy is suggesting sustainable strength. Rates backed up a little because of this report, but you're treading water a bit because of payrolls data lurking on Friday.
It's certainly an impressive number, it's the lowest since early 2001.
I lean toward a half point instead of a quarter. The Fed wants to shore up confidence, to show that, unlike the European Central Bank, it feels your pain.
That, combined with no job growth, makes it harder and harder for the Fed to pull the trigger in an election year.
One cannot deny that Katrina ironically may have had a positive effect on this index because of the big surge in orders.
We're not talking about large sums of money. It is ironically only worth a couple of dollars to the Social Security check of the average American. They may be able to knock back a cold beer in a cheap bar.
It's an impressive number. It just gives you more confidence that you'll get 4.0 percent plus (increases) in the fourth quarter and you'll hang in there through the first.
[Yet while sentiments are that small-caps will rise as long as large-caps remain strong, some on Wall Street believe the bull market has a limited outlook for the near term.] Let me put it this way, the market is more likely to be down 10 percent (in a few months) than up 10 percent, ... But I don't look for any big correction.
I wouldn't make a lot out of those figures.
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