Tag Archives: commodities
The mercury is climbing, blossoms are bursting out — so does Wall Street finally get to celebrate a springtime of its own? For eight long months now, a ferocious credit crunch, unprecedented since the Great Depression, has trapped investors in a deep freeze. Not only stocks and real estate, but even some of the (reputedly) safest bonds and money market instruments fell victim to the Arctic blast.
Happily, I’m detecting hints, here and there, of a thaw. It’s taking a lot longer than I had hoped, but we will see the end of this new Ice Age. As a balmier climate sets in, we can look forward to healthy markets again — and a return to the steady, consistent profits we enjoyed from 2003 to around mid-2007.
Was that the bottom? I mean, THE bottom? Well, there’s a good chance it was. Monday’s stock market low had all the marks of a final, panicky washout. But even more encouraging was today’s action, in which financial stocks skyrocketed while inflation-sensitive commodities (especially gold) plunged.
September pause! We’ve cautioned you several times in recent weeks that the stock market often takes a time out in September. Well, here we are in September, and the market is backing away from its August highs. But don’t despair. This is only a temporary break in the action.
Contradictions! Stock prices bounced this week as investors focused on soothing comments from the Federal Reserve and ignored the skyrocketing price of crude oil. We’re not sure how long this type of contradiction can last.
Will these oppressive energy prices ever calm down? It’s a thought on the mind of every stock investor these days as prices for oil, gasoline and natural gas (the real “screamer” of the three) flirt with all-time highs.
The gold market is giving Alan Greenspan a run for his (depreciated) money. Bullion soared to $455 an ounce in New York today, just shy of a 17-year peak. With the surge of buying we’ve seen lately from Asia (especially India), I certainly can’t rule out the possibility that the Midas metal will scale even greater heights in the days ahead.