Monday, February 04, 2008

Gold vs. XLF




I noticed an interesting correlation. A lot of people look to gold as a safe haven during an economic decline and are staying away from financial stocks from the huge losses they keep turning up each quarter due to the subprime mess. The question is, will this inverse pair correct back, and is the reversal starting right now? (ie. Sell gold, buy US financial stocks, & US dollar value increases)
Or is this just financial stock short covering, and a short term pullback in gold?

Bush unveils $3.1 trillion spending plan
( By MARTIN CRUTSINGER, AP Economics Writer)

"The president proposes more of the same failed policies he has embraced throughout his time in office — more deficit-financed war spending, more deficit-financed tax cuts tilted to benefit the wealthiest and more borrowing from foreign nations like China and Japan," said Senate Budget Committee Chairman Kent Conrad, D-N.D.

2 comments:

maran83 on 4:13 AM said...

What are you an analyst now??
Why don't you leave this to older and more experienced gals who don't have guts to take it on the street?

So you're trading now... or what?


M.

ripped2008 on 1:28 PM said...

Like the dude said, I thought u were a good trader who had grinded out +$$$ and just got sucker punched lately.

Why don't u get back on the horse and apply your edge in the markets?

At least keep the vids flowing. I found them very informative.

All the best with whatever u choose to do, HTP :)

ripped2008

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