Future

With 3rd Q reports coming out bad .
The only reason why FED needs to cut rates is to cushion the effects of the subprime market and bail out some troubled financial instituitions. Which to me is not feasible for economic growth.
When there is trouble they should sort themselves out rather than to cushion for them. It is not going to help the economy.
One very good example , if you read history ... you would have known that Japanese used to have a very good property market and bursting economy but when the bubble burst ... BOJ actually cut rates to save banks and financial institutions thus creating alot of phatom companies instead of letting it burst and to consolidate from there.

We are seeing the same actions to US and generally I would link it to Japan as a comparision and thats the reason why I'm thinking so.
Japan faced a economic standstill for the past 10 years instead of having a bull run seen expecially China their neighbour is having an above 10% economic growth which they should be the major gainers of that growth.

It is fine to have some expectations about where the market is headed.

However, one should not be too wedded to any point of view. The market is dynamic and made up of unpredictable human beings. We have to be flexible to respond to market changes.

Remember what John Henry said:"Nobody can predict the future".

In US many were very bullish in 2000 and cannot believe the tech crash would be that bad. Those who average down because they were long-term bullish about tech and its positive impact on the economy suffered big losses.
For a few years leading up to 2000, those who bought on the dip were rewarded with every rebound that surpass the previous high. When the real "dip" came, many were caught unawares.

One have to be vigilant as each new high make people more complacent. This is especially true when profits are made quickly with increasing ease. The "Big One" can take away all of it in one go.