Gold -- I gather many subscribers are worried about gold. The recent sharp decline, I believe, was a result of investors selling gold (which is always extremely liquid) in order to raise cash to cover losses in other areas. The daily chart below show RSI now turning up, and the histograms also rising from negative territory. Prognosis -- gold looks fine. Stop worrying.
Still worried about gold? Below is a monthly chart of the yellow metal covering the whole bull market that started in 1999. So far, the recent "big correction" in gold hardly makes a blip on the monthly chart. Gold's in good shape, as it has been for the last 5000 years. And oh yes, the gold bull market is still only in its early second phase.
Important --The five paragraphs below are from a article by Barron's Randall Forsythe, who, to my mind, is one of the best columnists writing today. Please read these five paragraphs carefully, they are critically important and reveal the dilemma that the Fed now faces.
Russell Comment -- Many commentators are now voicing the opinion that the worst of the housing mess is behind us. I disagree, I believe the worst of the housing mess lies ahead.
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