Thursday, July 1, 2010

The Story of the Second Quarter: Cash (the Dollar) is King

S&P 500:                     -11.86%

Nasdaq Composite:      -12.04%

Dow Jones Industrials:   -9.97%

Russell 2000:                 -9.24%

U.S. Dollar Index:         +6.19%
To my gold bug friends, unless Bernanke starts printing extremely aggressively, a severe dip in the gold price may be just ahead. Long term holders shouldn't panic out of their positions. Short term traders should be on the sidelines. The one variable that could negate the short term dip is buying by central banks. Panic buying by individuals will be finite in nature without central bank money printing. Whipsaw action could be the ultimate outcome.


  1. Lol...I guess I should just throw it in the trash, of better yet give it to a bum on the street hahah. Use this as a buying opportunity nothing more.

  2. What did gold do in the second quarter? Why on earth would you think that Bernanke won't print more money? When has he ever been shy bout printing money?