- Dec might rally because fund mangers will try means of boosting their portfolio, as they need to close their accounts.
- The rally could go into Jan, because of the Singapore bail out plan which is expected to be good and Obama's possible economic policies that he might implement when he goes into office on 20th Jan.
- The US having to fund for all the bail out has 3 ways to raise cash
- Increase tax, but this will not be good for consumer
- Issue Treasury bills. But in this current credit crisis and the amount of money that is needed, this might not be a good idea
- Printing more money. This will cause the currency to devalue. Hence if this happnes, its time to move out of USD based assets.