gabe borenstein

Monday Outlook: Ascendant Fear

The 700 billion dollars"aid" will provide the necessary economic/market stability.Unfortunatel... we need incremental amount of time for the "stability"plan to be implemented .The real threat to our economy has been averted even if mass psychosis grips the market .The FED should ease immiediately 50bps -100bps pending the iimplementation of the" liquidity injection".
Europe ,Asia and Emerging market economies are anothers story .
They are on the verge of their own Armageddon which they refuse to acknowledge.
Given the lack of response from the relevant Central Banks and the governments,Europe ,Asia and the Emerging Market economies are set up for a major tailspin.
U.S on the other hand has addressed the issues with a vey potent antidode and is short period away from stability and rebound ,psychology notwithstandig.
The investors need to dissassociate American economic outlook from the events outside.
The massive flight to dollar(assets),will accelerate geometrically(flight to quality).
Major equity rally is on the way and foundations for a major economic rebound are in place.
Psychology and the facts/fundamentals are divergent but bullish fundamentals will prevail.
I have warned investment universe against current turmoil as early as June of 2005 and as late as September 18 /2007.
Now,I am quite convinced that the neccessary remedy has been applied but we need bit more time to feel major economic/market rersponse.