S&P500 heading to 800 level
In 30 July I had written an article in my website call "Where is S&P 500 Index heading to?".
At that time S&P500 was trading at 1263.20, currently S&P500 trades at 996. This means S&P500 has fallen 21% since I wrote this article for Part 1, just imagine how much money you have saved (in not investing) by believing in my article.
The Federal Reserve, European Central Bank and four other central banks lowered interest rates in a coordinated emergency effort to ease the economic effects of the financial crisis.
The Fed, ECB, Bank of England, Bank of Canada and Sweden's Riksbank each cut their benchmark rates by half a percentage point. The Bank of Japan, which didn't participate in the move, said it supported the action. Switzerland also took part. China's central bank lowered its key one-year lending rate by 0.27 percentage point.
I predict that Fed Rate will eventually fall to 1%. If Fed Rate is indeed a good indicator of S&P500, (according to my model) then we will see the index going towards 800 level over the next few months.
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