What a reaction by the stock market after the bold cut by the Feds. The Yahoo Finance poll showed that 60% of the readers voted in favor of a rate cut. The major were expecting a cut of 0.25% but the Fed cut rates by 0.50% the first cut in four years. It gave a boost to the market but does it mean that a recession is coming? The Fed stated that “tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth.” Experts are predicting further rate cut…..no kidding.

With rate rate cuts means weaker US Dollar which means higher commodity prices like gold and oil. Today Texas oilman and investor T. Boone Pickens told Reuters in New York today that “You’ll hit $100 — I don’t think you’ll hit $100 this year unless you have some kind of geopolitical event that causes that to happen, but you’re going to get to $100 at some point,”.