market is selling off... but gold isn't reacting much though. unfortunately. i need a rally in gold! hehe
The market pendulum is just swinging a little wider due to rate hike nervousness, etc., which usually initially affects the value/high dividend stocks. Don'tcha just love the fear factor...?!
Who thinks the market is selling off because of a rate hike? My gut says we priced in a rate hike probably 2 weeks ago. I think at this point it's two main factors 1) President Bush, looking very vunerable. Regardless of politics, tax hikes and offshoring controls promoted by Kerry is not business friendly and would but the Parking Brake on the economy. This is the main factor IMHO as the market loathes politcal uncertaintity. 2) Inflation (who was recently spotted hanging out with Osama), although I think this may be overblown, because: Oil prices are up not because of fundementals but speculation on IRAQ and Opec. With Saudi's pushing for more oil now and China starting too cool, I feel oil is peaking. Listened to the CEO of Exxon over the weekend and he said Oil was overpriced. Dollar/Gold is not acting like inflation is out of control. Some are calling the dollar strengthing a bounce and are expecting Gold to rally from here but I am not convinced. Plus, a little inflation is not a bad thing. Few things have me concerned with regards to being bullish, is the Put/Call ratios on the SP and VIX, they still seem too bullish (which indicates a bearish reading) even after these recent moves down. Still it's starting to smell like a bottom.