The Fed won't be raising interest rates anytime soon, and if they do it will be small incremental changes such as 25 basis points.


Remember, the Fed made an "emergency" 100 basis point (1%) cut after the attacks that they never would have done otherwise, so this 100 basis points will probably be given back, but most likely this will take 6 months to a year.


Even if the Fed does start raising rates right away, and I am wrong, this does not bode all that badly for the stock market. Yes, there will be an initial "gut reaction" like there usually is but two or three minor rate increases isn't a bad thing. Rates are still very, very low. After the third rate increase you can start to reevaluate.


The only stocks I would be "shorting" at this point in time are the still over valued tech stocks and possible bankrupt to be past high fliers such as Lucent and Nortel. K-Mart will most likely go to zero, but it could take some time. The cyclicals are doing well now and it could take a while for tech to tag along especially since sector rotation is currently underway.