Comments from a reader

If the Fed follows the half point cut at the discount window with a fed funds rate cut on September 18th, will this action alone cause the dollar to fall further or cause a panic for the dollar?

Answer. Do not forget that the markets always win. You should not make decisions based on what the Fed will do.

Interest rates are collapsing right now. The rate on 13-week T. bills sagged below 3% (from a high close to 5%)!!!

The 10-year T. bond yields are also sinking from 5.2% to 4.62% as of this writing.

My point is that the markets respond promptly to emerging trends. Bureaucrats are always and consistently behind the curve.

My advice: follow the markets!

As far as the dollar is concerned I have been quite correct. For a completee discussion please read my The Peter Dag Portfolio.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977