High Yield Investments

The Dow has defied the slumping housing market and mortgage crises to once again reach a new high!  The surge is primarily fueled by hopes that a rate cut is in store when the Federal Reserve meets at the end of the month.  This is the first time in two and a half months that the Dow has crossed the 14k mark, and did so by setting another all time high.  Citi Bank, one of the nation’s largest, had said that 3Q profits would be down almost 60% due to mortgage’s gone bad.  However, their stock, along with failing Countrywide Financial Corp., were actually up slightly.  The housing jitters have caused chaos for the last two months, but a cut in the interest rate by the Fed could serve to give the economy back the push it was seeing 3 months ago.