Sitting on the Sidelines

Sometimes it is good to sit on the sidelines and just see what happens. That's what I've been doing lately. The market seems to be treading water, stuck in a range. Sometimes the smartest move is to actively...do nothing. Ive decided this is better than getting chopped up in the volatility.

Tommorow the Fed will most likely lower interest rates, despite the consensus that it is useless. Foreign investors holding a lot of treasury bills will get upset because they will soon earn negative interest. Banks will of course refuse to lower loans, instead using the rate cut to hoard cash and nurse their balance (and off-balance) sheets. And my personal mortgage and car loan rate will remain unchanged, preventing me from gaining any money back which I could spend on the economy. Oh well.. another day, another locked-up financial system...