Everything is up!!

[bgold]

Who can help put in perspective recent market developments:

US Stocks approaching new highs: Strong economic numbers gives confidence for future??

USD down: Concern about further growth? And, pick up of other economies?

Eur Stocks also up: Nevermind weak USD, they keep shining and making new relative highs albeit less spectacular than US.

Bonds are clearly up from August lows (eg yields coming down): from here it can go either way? Explananation? Strong economy should mean higher yields and vice versa?

Gold at 7yr highs: Concern about USD, global stability, monetary system? Chinese/Indian buying? Who knows?

Oil rallied up $4-5 from sep lows: Up because of concern about Iraq? Stronger outlook for global economy?


It all seems to be contradictory, or not? I can't put them all logically together. Something has to give? Stockmarkets? For example, if USD were to further weaken, one would expect EUR markets to go down and Gold to go up.

I try to go with flow and surrender to market forces but it would be great to have better insight?

Anybody willing to volunteer educated views?

 

[novice101]

Hi Bgold

I see you live near me!

I am as confused as you are and think it would be a good idea to get others to comment. I still have L plates but I seem to remember somewhere in the distant past that sectors are a good place to start.

I believe we are in a shift of power or prominence from the west to 3rd world areas and also China etc are ready to add to the melting pot!!!

IMHO!!

I wish Id learnt more about economics!!!

When you do find out for Gods sake let me know!!

Andi

 

[bgold]

Hi N101,
At least today, it seems to be making more sense. USD down, Bonds up (running as we speak), stocks down, Europe turning down.

Good point about sectors. Should get those sector indices on my quote screen. I have in trading stable $SOX/SMH, $BKX, $DOT, $OSX/OIH, $HGX, BBH.
Need to add a few others. Any suggestions?

As far as 3rd world. Trading wise, China has corrected somewhat. No doubt it will turn out to be the great area for future invetsment, but so was USA in 19th century (eg there will be many opportunities to make and lose a fortune - for now I try to avoid losing one!)

 

[Trader333]

$NBI and $GSO are 2 others for biotechnology and software.


Paul

 

[bgold]

Thanks T333,
I forgot to mention my favourites $XAU and $HUI and of course $MID, $VLE , $SML $RUT, to get sense for shift in out of small caps.
and, $XOI