Ironically Alan Greenspan once again managed to rescue the market from extremely poor sentiment by abstaining from a further interest rate cut. A rate cut at this point of time would have echoed the fears of a double dip recession in the US and would have been counterproductive. However, Mr Greenspan would need more than rhetoric in the next few months to prop up sagging investor confidence. Positive development was CEOs of various companies in the US, undertaking their financial results, this should remove some nervousness from the market not to mention its long-term benefit to the investors in US equities.
NSTL
