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Friday, December 3, 2010

How People React

When people read bad economic data, they panic, they sell while the FED just follow their own kind of trend.
That is, maintain current policies. Do not expect FED to call emergency meeting and change interest rate over night or whatever they have to do. Just like trends, they make it ride, it takes months to print billions of dollars, years to distribute to the market and years to feel the impact. Never fight the FED, my battle cry since March 2009.

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