It's the festive season but markets do not look at all fanastic. All gains reaped during the previous 2 weeks had pared back down. The Fed's quarter point cut has not gone down well with investors although I do feel that a half point cut would be too much as all economic indicators show a slower growth rather than a recession.
Another reason for the fall would be the lack of buying interest during this festive period as most investors are taking a holiday break. In addition, some investors would have locked in profits for some Christmas shopping. Usually during festive seasons, the lack of buying interest would cause indicies to fall as without much demand, the price of individual stocks would fall.
I expect the next 2 weeks to be not that fanastic unless a sudden good news appear. There would probably be some chance to buy in during the last week of the year. However, things might pick up in the 1st quarter of 2008 when economic results are shown during these period.
Lastly, have a great holidays!
