Equities

Ouch

The Fed

The Fed may be forced to raise interest rates to fight the rise in commodities. Just like the Fed was forced to slash rates to save the banking system the Fed may be forced to raise rates to keep commodities in check. The Fed may go back and forth between saving the banking system and to squashing commodity inflation. Depending on the month the Fed may move to the area that is more troublesome. Sort of like a fire department with limited resources that is forced to put out too many fires at the same time. It will move to whichever fire is strongest at the moment. This is just my opinion. I have taken this view because of the move commodities have had ever since the Fed has cut rates. We will see what the Fed does tomorrow. What a tough job.

US Equities Year To Date

From Yahoo Finance. As of the close of trading on Monday June 16th 2008:

Dow = 12,269.08, YTD = -7.51%

S and P 500 = 1,360.14, YTD = -7.37%

Nasdaq = 2,474.78, YTD = -6.69%

Jim McKay

I was saddened to hear that Jim McKay died over the weekend. In the 70s and 80s I grew up watching him broadcast the TV show Wide World of Sports on Saturday afternoons. Wide World of Sports covered all types of sporting event including some of the most exotic events from all over the world. The program was very entertaining and his announcing abilities made the broadcast that much better. He was one of the great ones.