GOIH Capital Markets: Market Overview

The market is shaky today after the subprime crisis now in England. North Rock a British financial institution had a "run” on the bank as depositors lined up to withdrawal their deposits from the bank.

On Tues, the FOMC meets in an anticipated meeting where the consensus is that the Fed will lower the Fed Funds rate by 25 bps. As we have in an earlier post stated we do no believe a 25-50 bp decrease will have nay effect on the economy.

The brokers report this week led by Lehman Bros. on Tues and the others later in the week. There is much dissention regarding the book value of the brokers. The assets on the balance according to the rumors will have to be reduced


FedEx (FDX), Best Buy (BBY) also report this week. Our models indicate that FDX will report forward guidance lower due to the decrease in consumer spending. Our models indicate that BBY will report flat to slightly lower expectations in earnings.

We see the market trading sideways pending the Fed's announcement on interest rates.

We will publish the results of the Monte Carlo simulation and the securities selected by the model.