wednesday, we'll be joined by
jeffrey gundlach.
you don't want to miss that
interview.
one area that is sure to feel
the brunt of any fed action is
the home builders which rally
today in home sentiment numbers
but our next guest says save
this rally.
we turn to the chart master, so
carter what do you see in the
charts?
>> you are having certain areas
that are rate sensitive and
reits and home builders.
i don't like them and i'm not
sure it matters what does happen
tomorrow.
but just to put the numbers in
context, this is the
performance, i have two panels
here.
first when the fed raises and
then what wh they cut the fed
funds cart rate.
this is on the next day.
one week and one month.
when they raise.
and obviously it is down.
as would be expected.
and the percentage it will be
down is almost 60%.
by contra distinction, when it
lowers, this is the performance
of home builders.
this is obvious stuff.