What the fed did was not unexpected. They have been printing trillions of dollars for the past year and some. How are they going to make people borrow when they cant even service the debt they have.
They are trying to help the housing market, but bottom line is there is too much supply still and the only cure for that is TIME, you guessed it.
This will be the first real counter trend rally of this whole bear market. Dont get sucked into the false feelings of reprieve. Get out when you get the chance, because this market is going much lower in the future. Retail investors will get sucked in to the false sense of hope during this current counter trend rally and the supposed smart money, (which is obviously an oxymoron in my opinion) will keep trying to pick the bottoms, as they are now. Again it is just a counter trend rally and the first one at that, so be warned.
The S&P is trading at a 23 p/e. Bear market bottom p/e's are under 10.
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