This morning the Federal Reserve announced plans to lend up to $200 billion to banks, and will accept both agency and private mortgage-backed securities. The markets are enthusiastically welcoming this news as it provides much-needed liquidity to credit markets that have been melting down in recent days.
This increases the odds that yesterday marked a successful retest of the January 23rd low. We will see massive short-covering today, driving strong gains in the equity markets. However, before becoming more aggressive towards equities, we need to see if this action by the Fed is successful in restoring calm to the credit markets.
This week, our Chairman Drew Kanaly was featured on CNBC "Squawk on the Street" and our Chief Investment Officer James Shelton was featured on CNBC "Worldwide Exchange" to discuss the latest news on the marketplace. Follow the links to hear what they had to say.
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