   A great day to be long in the markets.   The Fed cut by 50 basis points today… a larger rate cut than many people expected, and large enough to please Wall Street with the Dow Industrials up over 335 points, or more than 2.5%. The S&P 500 was up over 2.9% and the NASDAQ up over 2.7% on the day.  Lots of news out there about how the Fed is trying to prevent a recession, and the media is already talking about ways to cash in on the Fed rate cut.  For long-term investors, these are the kind of days that are essential to solid portfolio returns over time.   It remains to be seen for how long the markets see the Fed’s response as positive however. It’s now time to enter the “will we or won’t we” period of recession debate, especially as the housing and mortgage market challenges continue. The markets will pushed and pulled by those arguing both sides, and time will tell if we do indeed enter a period of recession. Many economists believe a recession is almost a given at this point. If that is true, then the market volatility is not over yet, and we’ve got some challenging times ahead.  Personally, if we do enter a recession, I think it will be mild. The global engine of economic growth is still moving along pretty well. All of that is a debate for the future. Today we can enjoy the market’s action, and the knowledge that Mr. Bernanke and friends are working hard to stay ahead of any challenges.
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