GOIH Capital Markets: Market Overview

Our indicators see the market opening higher on low vol. After the Fed cut both the Fed Funds Rate and the Discount Rate by 50 bps the market is unsure what this actually means economically.

Our Quantitative Finance Group has reprogrammed our Market Monte Carlo simulation and we will post on next week the results of the new simulation.

Because of the cut in US interest rates we will see continued weakness in the Dollar relative to other currencies, as well as continued strength in gold due to the inflation risks cause by the lower interest rates.

Stocks that are attractive with a weak dollar will be profiled.

Oil has reached a new high after the interest rate cut, how does this play into the inflation calculation, and if inflation increases, can the Fed lower the rates again with inflation risk increasing?

Our QFG is researching these issues and will report back here with strategies to implement for above average profits.