Call it a honeymoon, call it a result of Obama’s known, solid choices of the members of his economic team, call it a statistical bounce resulting from an oversold condition. Whatever it is called, the markets are way up and headed further up, for a big pop. Again, I am in no way an advisor, but a reader and sometimes thinker. It is interesting to note that in the past the economic actions by the Federal Reserve and the government have not been greeted with such enthusiasm, but with a new President and a new team, it appears the markets are hopeful. I would doubt that it would last for more than a relatively short time, so bet short term on higher markets, long term on lower markets. At least that is one guess based on what I read and think. Here is one quote about today’s market response to the additional cash infusion:

“The Federal Reserve threw a massive life-line to consumers on Tuesday with two new programs aimed at making it easier for them to obtain loans for homes, cars and on credit cards.

Under the new mortgage program, the Fed will buy up to $100 billion of debt issued by government-sponsored mortgage enterprises Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It will also buy up to $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae.

The central bank also launched a $200 billion facility to support consumer finance, including student, auto, and credit card loans and loans backed by the federal Small Business Administration. This will lend to investors who hold securities backed by this debt.

The launch of the two programs lifted investor spirits and drove up the blue chip Dow Jones industrial average more than 100 points, or about 1.3 percent, within minutes of its open.”

Here is a link to that article:
http://www.reuters.com/article/ousiv/idUSTRE4AO4QY20081125?sp=true

Michael