GOIH's Quantitative Finance Group (QFG) has programmed a Monte Carlo simulation of the U.S. financial markets with the input variable a stochastic process of the Fed Funds rate. Our QFG has modeled the Feds Funds stochastic process with a range of (0-100) basis points in the Fed Funds rate.
We will announce the results of the Monte Carlo simulation before the Fed meets on Tues.
The model is designed to predict the effects on the market of the Fed's action regarding the interest rate and other policy decisions concerning the economy.
We will publish a list of stocks we feel will be affected by the interest rate decision and the predicted market action: the Dow, Nasdaq, Dollar, Yen, Euro, housing sector, financial sector.