AIO Finance Analysis

Is the credit crunch over? News on Tuesday of the Federal Reserve pumping $200 billion of Treasurys into the market sent stocks soaring.

But several investing experts said that even if stocks rally again Wednesday, you shouldn't start popping champagne corks.

"There is the hope that the credit crunch is over but it's not founded in reality," said Haag Sherman, managing director with Salient Partners, a Houston-based investment firm and subsidiary of Sanders Morris Harris.


As stocks started moving higher Tuesday, Sherman said he thought many investors with bearish bets were forced to buy - or 'cover' their positions - so they could lock-in gains or minimize losses. But investors need to be selective.

Source: CNN