MLR - Premarket Pulse September 24, 2012
The market reversed course closing near breakeven at or near the lows of the day. Volume was much higher due to the S&P rebalancing that took place on Friday.
The weakened US dollar and central bank printing en masse has led to a strong rally in gold. QE3 is open-ended and could last 3 years or longer at a cost of over $3 trillion according to the Federal Reserve.
Meanwhile, central bank buying of gold has increased so far in 2012, while the supply of gold has remained level. While this will further boost the price of gold, recessionary economies won't help gold unless there is a simultaneous pickup in inflation, a.k.a., stagflation, as we saw in the 1970s.
Futures are getting pounded as a number of headlines give investors an excuse to take profits, and it remains to be seen whether the sell-off develops into anything more material. Investors should keep a close eye on their stops in individual portfolio holdigs.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.