The Dow has rebounded today, which is great if you spent yesterday afternoon watching your retirement disappear. But it’s rebounding on a few key assumptions. From Bloomberg:
U.S. stocks rose, sending the Standard & Poor’s 500 Index to its biggest rally in almost a year, amid speculation the Federal Reserve will act to restore confidence in the markets after yesterday’s rout in equities…“We’ve come down too far, too fast,” Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, said in a telephone interview. His firm oversees $550 billion. “We’re due for a bounce given how oversold we are. We believe the Fed will try to stabilize things and reiterate its commitment to do more if the situation warrants.”
And if the Fed doesn’t act? See photo above.
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