Friday, October 5, 2007

Buy Banks, Buy Metals

The jobs number came in this morning at 110,000. Not bad I suppose. Not too high not too low but low enough that the Fed can use it as an excuse to raise rates once again and kill the $US a little faster. As I have said before is despicable that Wall St says jump and the fed says how high? Despite what CNBC will tell you price stability is the Fed's #1 concern, not Wall St bonuses.

What really annoys me is the double sided mouth of the CNBC gang. On the one hand they say all is well in the economy. The they say a rate cut is a must? HUH? Either things are OK or they're not. What in the hell do you need a rate cut for if the economy is humming along just well? Mr.Kudlow? Any comment? Bueller? Fry? Simone? Anyone?

Anyway: seeing how Ben Bernake has become the Wall St poodle, we have to assume he will cut again at the next meeting.

And when he cuts you want banking stocks and you want metals. I own Bank of America and I own SLV. Both have been doing very well lately. SLV took a bit of a hit this week, but bounced back. BofA is steadily climbing up. I am buying some more of both. I would still stay away from WaMu and Wachovia though.

1 comment:

Dotty said...

Interesting to know.