Daily Commentary by Larry Baer: Waiting
and watching.
Investors of just about every description are
moving to the sidelines to wait and see if this week's policy meetings by the
European Central Bank, the Bank of England, and testimony from Fed Chairman
Bernanke to the Joint Economic Committee of Congress will produce any sign of a
developing major monetary intervention effort to rekindle economic growth here
at home and aboard.
There are strong expectations that something
will happen - and I don't particularly disagree -- but in my judgment any
action from the central banks will likely be very limited at this
juncture. If my assessment proves
accurate another brief but rather powerful round of profit-taking may hit the
credit markets as investors register their disappointment at the timid policy
moves central banks are choosing to make as the world teeters on the brink of
another global recession.
Fed Chairman Bernanke's appearance on
Thursday morning before the Joint Economic Committee of Congress will easily
trump Tuesday's Institute
of Supply Management's
May Manufacturing Index and Thursday's jobless claims report for the week
ending June 2nd as the most dominate event on this week's
calendar.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
