Monday, 14 September 2009

Weekly Wrap: Your source for stock, stock market, and stocks info

Weekly Wrap: Last week the Federal Reserve said in its beige book that the U.S. economy is stabilizing. How ‘bout…no. The U.S. economy is stabilizing!? Only if you live in a dream world. There are many economic measures of health that you could look at such as credit growth, auto sales, gambling sales, retail sales, unemployment, housing, etc. These reports are apparently “less bad” but they are still bad. The market has just become numb to bad news anticipating a rapid recovery. Foreclosures dropped a little in August from their record high in July, but still looking to march higher as more and more people are underwater on their mortgages and can’t pay. That spells trouble for the banks, by the way, but you won’t hear any mention of it now because of the rise in optimism since the March lows. Gold has broken out above and closed above $1000 to a record of $1004.90. Keep your eye on gold because it is “real money” and with all the global money printing going on, somebody is going to have to pay the bill. I think the “powers that be” will try to pound the price of gold back down, because they can’t afford for the world to start panicking about the currency they do business in. What I think is interesting is that there is a concerted effort to hold the price of gold down over the last 2 years, and they haven’t been able to do it. The demand for gold right now continues to rise and I don’t think it will abate. You can expect higher prices for gold in the coming decade without a doubt (same with oil, too.) The market blazed higher last week. All the index made new closing highs for the year. Completely taking bears like myself by surprise as I thought the market was due for some kind of correction. I don’t know how long the market makers can keep propping the market up with no volume, but it will end. They always do.

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