Alliance Capital Management Holding LP, American States Water Company, Houghton Mifflin Company, Midway Games Incorporated, and Performance Group Company. Despite the market's unhappy reaction to the Fed's recent rate reduction, history shows that lower rates eventually bring higher stock prices. Alan Greenspan does have the ability to alter interest rates, but when he waves his wand and interest rates fall, there is typically a lag time of six to nine months before business improves. The market is not overpriced. I'm not bearing about stocks at this level, but I'm not excited either.
Stocks are still a long-term hold.
If there's anything we learned recently, it is diversification, diversification, diversification. Not just in stocks and bonds, but certainly in sub-sectors as they pertain to the Old Economy and New Economy. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Inc. Click here for the IBS privacy policy , terms of use .