Just because the Dow Jones was down another 239 points on Tuesday, after the biggest down week since the Great Depression, doesn't mean it can't get worse. Gold at a record high! It appears as though world investors are frantically pulling money from the markets and putting it in gold as an inflation bet. And, sources tell Strategy Update that the major financial institutions are investing in oil, so expect the price to remain high as speculators keep the price up, including concerns that rebels in Nigeria may attack African oil supplies. (Reuters says the attacks may happen in days. Obviously, the army is trying to prevent this.)
Expect gold to say at record (and new record) highs today. Gold mining stocks may add to yesterday's soaring shares. Some feel we have hit the resistance point, and although you may see some profit taking...gold should EASILY blow past $900 in early '08, without a sweat. And if it hits $1000...MAN IS THE ECONOMY SCREWED!
Read the threads below on this blog for further explanation as to why KISS - "All Hell's Breaking Loose" is the Strategy Update music video of the day.
strategyupdate.com
AFTERMATH UPDATE: What happened to the stock market on Friday 01/11? (Close enough timing?) This update posted 01/12/08
Disclosure: AUY, MOS
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