If you know how to play it, this is a rally you good be making a killing in right now. Market news about banks getting into better shape have helped this jump. Is this really just an April Fool’s joke to get investors back in the market, or is it because people have been waiting for any excuse to recover their losses? If you had money in the S&P 9 years ago, you’d be right where you started today. Put in the cost of inflation, and you’ve lost a lot of worth, but also a bunch of time. Granted, dollar cost averaging would have done you “some” good, but was it enough?
Something to be expected today is that Gold and Silver is taking a dive along with other commodities. This is because money is running to an illusion of a safer stock market. Does anyone see the other news out today?
- UBS writes off $19 BILLION
- Home building tumbles for the 24th straight month
- Deutsche Bank expects a $4BILLION subprime hit
- Ford Sales sink – “The month was expected to be one of the worst for automakers since 2005 because of consumers’ worries about the economy”
Our Dollar raised against the Euro today with word of 2 leading European banks having more issues with the subprime mess. If you didn’t know this, the European real estate market beat the US real estate market during the boom. Their crash is prepping to be harder than ours. Gold and silver drop when the Dollar Gains over the Euro. The problem is that the Euro got weaker because of US banking issues.
What can I say. The gains in today’s market do not make sense to me. I have a bad feeling this bounce up will only create an accelerated fall in the next few weeks. Gold and Silver are starting to really form strong supports for themselves. One expert was hoping to see it drop this low again to $870 an ounce. He speculated that if this happened, a solid support could be created that will prevent Gold from ever going lower.