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Post by jeffolie on Oct 23, 2012 10:41:56 GMT -6
Metals tank with stocks
Looking at today's market decline, metals on a percentage basis declined about 50% of the percentage of the stocks decline. The media headlines for the stock decline focused on the EU difficulties.
Generally, assets rise and fall together. In part, the HFT algorithms act just like the 1987 crash "program trading" by moving most all assets [stocks, oil, metals] in the same direction while safe haven Treasuries get the exiting cash flow.
my jeffolie view: the next large stock bear market will have metals declining and Treasuries gaining ground as the safe haven.
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Post by unlawflcombatnt on Oct 23, 2012 11:51:51 GMT -6
It's significant that Platinum is falling faster than Gold.
That usually means the economy is doing more poorly, or at least is about to do so.
The only explanation I've ever been able to come up with for this connection is that Platinum is an industrial metal that has real usefulness in industry.
Gold has no industrial use whatsoever. It is only good as a storage of value and wealth.
Bad economies promote storage of value wealth over investment in industrial supplies.
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Post by jeffolie on Oct 24, 2012 11:05:50 GMT -6
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