Equity market going to rise or plunge further?..

Hey, what's going on with the market?!?... a question that is ringing in many of our minds and in fact, fundamentally the economic situation in the US is doing well despite the S&P downgrade, however, Europe is the culprit... unless the sovereign debt issue is resolved with solid measures being implemented, one of them letting countries that are weak to fail or default and kick them out of the Euro circle. By continuing to bail them out is only going to create more issues down the road and we will never get to invest in peace knowing we just buried a "time bomb".

Well many can say, what's the big deal with the debt ceiling? nothing too serious in my opinion... the US can still print money as they have always been doing and will continue so in the future.
The most critical day that many investors are waiting is Aug 26th the day the Fed will meet and many are expecting there will be some indication of stimulus as evident in the last few days whereby bargain hunters swooped in....

Tell you what, if by Friday the stock market is reasonably sustained, why would the Fed be doing anything? Another way of saying is why does the Fed need to say something to the tune of QE3 (for example)? They don't!!... the Fed has said that they will keep interest rates low until mid of 2013 and they will let the market ride out the rough waves... what makes you think the Fed would be announcing some stimulus for the economy or even QE3?

While I remain a buyer, I just don't think the market have reached the bottom on the overall... some stocks don't need to wait until the market tanks before they reach super cheap status... with the rate that the KLCI is going (for example), many stocks are already fundamentally cheap if you are to long them... Key is to spot them and take the risk...

Main concern here is Europe needs to do something fast before it drags the US banking system down with it...
Last I want to see is Dow Jones down more than 1000 points in a day.... To Germany, the big brother of Europe "Be a man , do the right thing".