The worst is over. The Federal cavalry has arrived. The Fed has lowered interest rates. The President and Congress are going to cut taxes with Greenspan s blessing. The Nasdaq had rebounded.
Relief is on the way.
The storm clouds will begin to dissipate. The much hoped for Soft Landing has been achieved. Just as mariners must consider different weather and sea conditions, investors must be alert to different economic scenarios. In my last installment I discussed the deflation scenario. This installment acknowledges three other possibilities inflation, stagflation and what I call The Perfect Financial Storm .