http://knowledge.wharton.upenn.edu/ Knowledge@Wharton is an online resource that offers the latest business insights, information, and research from a variety of sources. Content includes analysis of current business trends, interviews with industry leaders and faculty, articles based on the most recent business research, book reviews, conference and seminar reports, and links to other websites. en-us Copyright (c) 2012 The Wharton School of the University of Pennsylvania http://www.wharton.upenn.edu/faculty/nini_greg.jpg http://www.wharton.upenn.edu/faculty/ 125 45 Wharton Faculty Research Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=1842&source=rss <SPAN style="font-size: 10pt; font-family: verdana">At the end of October, the Federal Reserve gave the financial markets just what they had been asking for: a 0.25% cut in the federal funds rate. But in early November, stocks plunged and the dollar hit a new low. Applause turned into hand-wringing -- then back to applause as the markets rebounded in the middle of the month. Why can't the experts make up their minds? Is the outlook good or bad? According to Wharton faculty, forecasting is particularly hard now because some of the key factors -- such as the credit crunch arising from the subprime mortgage mess, spiking oil prices and the plunging dollar -- have little historical precedent. The result: Finance experts, including the Fed, may not be able to see too far down the road.</SPAN> Wed, 14 Nov 2007 15:21:26 EST