Fed 75

A 75 basis point cut, before the next meeting, and before the market open, didn't see that coming... Of course instead of being seen as helpful, or ready to help, it's seen as a sign that there must really be a serious problem, so sell, sell, sell! Traders must be completely psychotic.

Foreign traders driving those markets down say that they think nothing the Fed or Bush will do will have a big impact.

Ironicly, that's really true. Handing every American tax payer $600, or cuts to Fed funds rates, in actuality, will have no short term impact. Maybe not even a medium term impact. It's all in everyone's heads. Which is why so many people don't invest in stocks or mutual funds.

It's also why it isn't all that hard to do well in stocks and mutual funds. People are stupid, which creates an advantage for other people willing to do rather obvious and rather boring things. Buy quality and hold, hold for many years. Buy value. And the most important thing, that hardly anyone does, buy low and sell high high.