US: US stocks rose, sending the Standard & Poor’s 500 Index to its best gain in two weeks, after the Federal Reserve said risks to economic growth have diminished and gave no indication it will raise interest rates anytime soon.

Europe: European stocks rose as one of Nokia Oyj’s biggest suppliers said mobile-phone demand is strengthening and European Central Bank President Jean-Claude Trichet said he hasn’t signaled a series of interest-rate increases.

Asia: Most Asian stocks rose, as gains by oil producers countered a drop among mining and financial shares. Cnooc Ltd., China’s biggest offshore oil producer, advanced after starting output at a new field and after crude climbed above $138 a barrel.

Commodities: Crude oil was steady after falling more than $2 a barrel yesterday as U.S. inventories rose for the first time in six weeks because record fuel prices cut demand. Gold fell as a decline in energy costs reduced demand for the precious metal as a hedge against inflation. Silver also dropped.

Currencies: The dollar traded near the lowest in more than two weeks against the euro after the Federal Reserve gave no indication that it will start reversing the most aggressive series of interest rate cuts in two decades.

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The US Federal Reserve held interest rates steady on Wednesday but voiced concern over inflation worries.

The decision by the US central bank, announced at the end of a two-day meeting, leaves the benchmark federal funds rate at 2 per cent.

‘Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased,’ the Fed said.

US stock prices rose and prices for US government bonds initially fell after the announcement. Bond prices, however, later reversed course as traders scaled back expectations for a rate hike at the Fed’s next meeting in August.

In its statement, the Fed said ‘overall economic activity continues to expand’. After its last policy meeting on April 30, it described economy activity as ‘weak’.

This was the first time the Fed has held rates steady at a policy-setting session since embarking on a series of rate reductions in September to put a floor under an economy hit hard by a housing downturn and credit crisis.

Policy-makers at the central bank are at a difficult juncture. A deepening housing decline looks like it will be a drag on economic growth for months to come, even as higher oil and commodities prices threaten to ignite a broader inflation.

Senior Fed officials in recent weeks have said that risks of a serious recession had receded after a period of turmoil marked by surging mortgage delinquencies and the near-bankruptcy of investment bank Bear Stearns, and they have begun to turn their sights on the need to contain inflation.

I think the Feds will start to raise rates only at the end of 2008. We shall see.

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Q. What’s the definition of irreconcilable differences?

A. When she’s melting down her wedding ring to cast it into a bullet.

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Even if you’ve been fishing for three hours and haven’t gotten anything
except poison ivy and sunburn, you’re still better off than the worm.

Author Unknown

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A blonde, wanting to earn some extra money, decided to hire herself out as a “handy-woman” and started canvassing a nearby well-to-do neighborhood. She went to the front door of the first house, and asked the owner if he had any odd jobs for her to do.

“Well, I guess I could use somebody to paint my porch,” he said, “How much will you charge me?”

The blonde quickly responded, “How about $50?” The man agreed and told her that the paint and everything she would need were in the garage.

The man’s wife, hearing the conversation, said to her husband, “Does she realize that our porch goes all the way around the house?”

He responded, “That’s a bit cynical, isn’t it?”

The wife replied, “You’re right. I guess I’m starting to believe all those ‘dumb blonde’ jokes we’ve been getting by e-mail lately.”

A short time later, the blonde came to the door to collect her money.

“You’re finished already?” the husband asked.

“Yes,” the blonde replied, “and I had paint left over, so I gave it two coats.”

Impressed, the man reached into his pocket for the $50.00 and handed it to her.

“And by the way,” the blonde added, “it’s not a Porch, it’s a Lexus.”

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Einstein dies and goes to heaven. At the Pearly
Gates, Saint Peter tells him, “You look like
Einstein, but you have NO idea the lengths that some
people will go to sneak into Heaven. Can you prove
who you really are?”

Einstein ponders for a few seconds and asks,
“Could I have a blackboard and some chalk?”

Saint Peter snaps his fingers and a blackboard and
chalk instantly appear. Einstein proceeds to
describe with arcane mathematics and symbols his theory
of relativity.

Saint Peter is suitably impressed. “You really ARE
Einstein!” he says. “Welcome to heaven!”

The next to arrive is Picasso. Once again, Saint
Peter asks for credentials. Picasso asks, “Mind if
I use that blackboard and chalk?”
Saint Peter says, “Go ahead.”

Picasso erases Einstein’s equations and sketches a
truly stunning mural with just a few strokes of
chalk.

Saint Peter claps. “Surely you are the great
artist you claim to be!” he says. “Come on in!”

Then Saint Peter looks up and sees George W. Bush.
Saint Peter scratches his head and says, “Einstein
and Picasso both managed to prove their identity.
How can you prove yours?”

George W. looks bewildered and says, “Who is
Einstein and Picasso?”

Saint Peter sighs and says, “Come on in, George.”

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US: U.S. stocks retreated to a three-month low after consumer confidence weakened and United Parcel Service Inc. said rising fuel costs will reduce profit.

Europe: European stocks fell for a fifth day as higher oil prices and weakening consumer confidence in Germany weighed on carmakers, airlines and retailers, while a drop in mortgage approvals pushed U.K. homebuilders lower.

Asia: Asian financial stocks fell after Goldman, Sachs & Co. advised selling banks as credit losses widen and Lehman Brothers Holdings Inc. said the parent of Japan’s largest consumer-finance company may be insolvent.

Commodities: Crude oil was little changed in New York after Royal Dutch Shell Plc said it resumed production at the Bonga field in Nigeria that was attacked last week. Gold rebounded on speculation the Federal Reserve is unlikely to raise U.S. borrowing costs anytime soon, weakening the dollar and boosting the appeal of the metal as an alternative investment. Silver fell.

Currencies: The dollar was little changed against the euro and yen before a U.S. Federal Reserve meeting at which policy makers are forecast to keep borrowing costs unchanged, ending a run of seven interest-rate cuts.

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The psychological defense mechanism of denial is powerful. It is hard to see things that we just don’t want to see. This is true in everyday life and it is true when trading the stock markets.

Holding on to losing trades is so common that behavioral economists have given it a name. They call the ailment the “disposition effect”. There’s a natural human tendency to protect our assets, and an equally natural inclination to deny the trouble we are in when we’ve made a losing trade. If you’re like most people who enter the trading profession, you want to win. You hate being wrong, and you hate losing. And when you rigidly refuse to accept a failure, denial sets in and reality is distorted.

Trading is indeed a stressful business. There’s pressure to do well, and the need to do well can interfere with your ability to cultivate the calm, winning mindset needed for financial success. But by staying optimistic and managing your risk, you can remain objective, free, and creative.

And when you reach this state of being, you’ll increase your chances of trading with the proper mental edge. All the Best!

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Abe runs into Stu in the bar and asks, “Hey, Stu, I understand
that you bought yourself a racehorse. What’s up with that?”

“That’s right, I got him last week. I always wanted one, and
besides, the guy who sold him to me told me the women go crazy
for guys with horses,” says Stu.

“So…is that true?” asks Abe.

“Too soon to tell,” replies Stu.

“Okay,” says Abe who then asks, “So, have you raced him yet? Is
he any good?”

“He ran his first race yesterday, and he’s a really good horse.”
replies Stu.

“I assume he won then.” remarks Abe.

“No, but he is really a good racehorse.” insists Stu.

“So…he didn’t win, and it’s too soon to tell if he’s any help
with the ladies…how do you know that he is such a great horse?”

“Well,” sayd Stu. “It took all 11 of the other horses to beat
him!”

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On a joint naval exercise, US President Bush, UK PM Gordon Brown, PM Lee of Singapore met on board the RSS Courageous.

They were commenting on how their soldiers were the best. So they agreed to put the statement to a test by asking each country’s soldier to dive into shark infested waters and bring one shark back on board.

Bush ordered the Marine down. After evaluating the situation, the marine took the needed equipment to protect himself and minimize his risk and dive in and successfully came back with a few bruises and a SHARK. Bush happily exclaimed, “Look what we have here! A Smart Soldier!”

Not to be outdone, PM Brown commanded his royal marine down. The soldier, even without accessing the situation, jumped into the sea with only a knife and came up bruised and battered, but still alive with the shark. PM Brown was estatic and said, “This is what soldiers are made of! Guts!”

Feeling a little bit worried, PM Lee asked his general for any soldier and the general selected Pte Beng. On hearing the order to jump, Pte Beng looked into the ocean and on seeing so many sharks, was flabberghasted!

Pte Beng turned to PM Lee and said, “You Siao Ah! So many sharks and you asked me to jump in. You Jump then i jump lah!”…

Oh hearing that, all 3 PMs looked at each other and an awkard silence falls onto the ship… Finally PM Lee broke the silence and beaming proudly said… “Now, this is our soldier! SMART Thinking and Got GUTS !”

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