After the Federal Reserve’s rate cut, stocks and exchange traded funds (ETFs) finished their best week since March. Yet some financial analysts are wary to rejoice, as they believe the markets are being manipulated to create an inflationary boom, reports Peter Brimelow for MarketWatch. Gold prices soared last week to a 28-year high; gold is where investors go during inflation. These analysts also point out that higher inflation is a possibility with rising oil prices and a falling dollar. However, with credit risks affecting global markets, the Fed felt intervention was necessary and responded with lowering rates. Investors seemed to like the move, as they jumped back into the market.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.