The US mkt / economy and GOLD stocks

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    For those interested, here is a view from the weekly ‘market monitor’ section from today’s edition of the US financial show Nightly Business Report. The Market Monitor features a different talking head every week. Most of them are more thoughtful than the ‘cheer squad’ analysis you often see on TV. This talking head is a technical analyst --

    ‘Well, Paul, we're still in the midst of a bear market that's been going on for two to three years, we had a nice bounce off the July bottom, not a very impressive one, very light volume, in fact. And over the last week or two that has been rolling over to the downside. Yesterday, for example, the Dow broke some support at 8,000, which was not good. What we're looking for now is for the major averages to come back, retest those summer lows and we think there's a pretty good chance they're going to be broken…

    About the only group we like now, Paul, and we've liked them for most of this year, and that are the gold stocks. Normally in a low interest rate environment with the dollar weak and the stock market weak, that's about the only group that has held up. They normally do well in this environment. So we've been suggesting to people that, we've been saying this all year, basically, that right now about the only safe haven left are the gold stocks…

    And, also, another thing, housing stocks broke down this week. That's been the last bubble and I think they're beginning to roll over, as well. So we believe that the markets leads the economy. And it does suggest to us that we are heading into a double dip.’

    Angus
 
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