[Briguy]

Andrew, You are very astute for only being a 3rd year college student. Interest rate cuts by the fed usually take anywhere from 12-18 months to work their way through the system. This time you may be right with your 6 month prediction...the fed has cut rates faster than ever before and may not be done. The fed target is 2% and they are currently at 3%.

The bad part is when you help one group(loan seekers) you hurt another group(seniors on a fixed income) CD rates have plummeted in the last 60 days from roughly 5% for a 1 year down to the 3% range. Meanwhile gas prices are back over 3 bucks, milk is up 40% in the last year. I just paid 4 bucks for 5 ears of corn!!!!!!!!! Damn, corn was 5 for a buck before this ethanol hysteria began. The only thing that I can think of that has gone down in price in the last 12 months are plasma tv's and geezers aren't buying them.

Most of my clients are very well diversified in stocks and bonds both in the US and Foreign. Investing in ETF's are also a way to further broaden your portfolio because you can invest in specific sectors such as: Energy, Agriculture, Solar, Utility, Income, BRIC(brazil,russia,india,china) to name a few. Commodity investing can also be done in ETF's and you can instantly invest in single commodities such as oil,nat gas, silver, gold or even an ETF that invests in a basket of commodities.

I hope this helps. PM me if you need more specific information.