The Bear Market is Coming

Subprime Mortgage market, it seems, have been the addictive narcotic that requires high amount of pain to withdraw from.

The fed have been cutting rates from as high as 5% to now at 3.5% since November, with surprise rate cut at the fourth week of January 2008 cutting 0.75%. This was done, many believe, to put a brake to the decline being suffered by US major indices.

Indeed, the markets all around the world saw a halt to their seemingly utter demise, but every expert analysists now are seemingly in chorus: the rate cuttings are not enough; they want more! This attitude is like giving insults already injured market bulls and when the bulls are injured and insulted, the bears will take over.

And nobody but short-sellers (to a certain degree) wants a bear market. But the signs of the coming regime of the bears are in sight: the markets lost nearly 20% of their value since the subprime mortgage meltdown. The traders demand nothing less than aggressive rate cuts, and the talk about USA economic recessions are gaining additional voices daily.

Last week of January 2008 is a crucial moments for stocks, forex, and futures investors everywhere: will they saw the Bears erect their Standards on top of markets, or will the bull pulls out a miraclous comeback and swat the bears back to their dens?

No one knows.