And the head of the Federal Reserve, Mr. Bernanke, has pledged to keep interest rates at this level for two years. TWO YEARS.
In other words, he is going to be sure to get inflation before he raises rates. This decision will certainly constrain the Fed from raising rates, even if inflation or the economy picks up. It seems to me that the risk is to the upside.
I will still trade, ie, change positions on a short term basis, but at least for now my bias will be to the long side on stocks, and natural resources.
As always, limit your risk and the upside will take care of itself.
And the link to the book that made the light go on in my head many years ago. I highly recommend it to anyone interested in investing or trading macro.