Tuesday, August 21, 2007

September should tell the tale

Bob Pisani of CNBC reports today that is looks like September, 2007 is the make or break month for the financial markets.

After the Fed took a baby step last week by lowering the discount rate by 50 basis points, money managers are continuing their run for cover. According to The Wall Street Journal today, $50 billion was invested in treasury and government-only money-market funds August 15-17 while $21 billion was taken out of "prime" funds.

No matter if the stock market rebounds and the Dow Jones Industrials return to 14,000 or even go to 15,000. Come mid-September we'll see what the markets are now forecasting.

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