A famous saying of Warren Buffet is, “be wary when others are greedy and greedy when others are wary.” Simply put, don’t follow the crowd. My investing philosophy tends to follow this mold and big down days like today, the major indexes are down about 2% as I right this, are tremendous buying opportunities. I had been unloading stocks all this week because I see the market continuing a slide through the Fed Chairman Bernanke’s next meeting to announce whether or not a cut in the discount rate is warranted.

I do not anticipate a reduction in the discount rate, even though it seems to be priced into the overall market right now, thus a disappointment is coming from the meeting September 18 and the market will correct even more at that time. Most traders and economists are expecting a cut based on the turbulence in the stock market and the subprime mortgage meltdown, but retail sales are still chugging along and this Fed Chairman is well known for his “inflation targeting” strategy when it comes to managing the fed funds rate. Bernanke’s opening of the fed funds window was a gift, but I don’t see him lowering the overall rate just because the market wants it, especially when inflation is running at the high end of his target of 3% so any move to lower rates would probably push inflation higher and out of his target. Despite the housing market, the economy is continuing to move forward.

Some stocks I am currently hunting:

Apple Inc. (AAPL)

Nutrisystems Inc (NTRI)

Yahoo (YHOO)

Abercrombie (ANF)

Remember, that September is historically the weakest month of the year for stocks in the US. So this is the time to watch for good names that go on sale. Use this opportunity to scoop up some great companies at even better prices.

[tags]investing, stocks, fed, interest rates, fed funds rate, bernanke, shaun carter, yahoo, apple, abercrombie, nutrisystems, market, inflation[/tags]