By: Michael J. Carr of Street Authority
Stocks moved up the fourth week in a row and have delivered a large gain in the first 10 months of the year. For now, there is no reason to expect a reversal in the trend.
Stocks Continue Setting New Highs SPDR SP 500 (NYSE: SPY) added another 0.15% last week and is now up 25.55% for the year, including dividends.
To put this performance into perspective, we can review data for the SP 500 index going back to 1928. This year's performance would be the 22nd best year out of 86. After such a strong performance, many investors expect a decline, and the question becomes, "How bad will the decline be?" Continue reading "Indicator Shows Gold Could Finally Be Bottoming"
The Gold Report: In early 2012, Roger, you predicted that the price of gold would rise to over $2,000/ounce ($2,000/oz) during the year. But as the overall stock market increased in value, the yellow metal went in the opposite direction. What happened?
Roger Wiegand: Two things happened. First, the last gold peak almost made it. It went to $1,923/oz, and that was a technical and fundamental top. Then it sold down. The other thing that happened is that the U.S. Treasury intentionally sold gold to protect the stock and bond markets. Treasury feared that if gold ran up too high too quickly, people would dump securities en masse.
We are in the seasonal cycle when many markets go sideways. We have seen the selloff at the end of last week. A triple bottom is extremely bullish. The snap back in the price going long could be impressive.
TGR: What factors are keeping gold down in the near term? Continue reading "Roger Wiegand Predicts a Brand New World for Gold"