The Dow is down 130 in one of the largest intra-day turnabouts in years, and gold is now even.
It should be obvious to one and all that, if the nation is heading into recession, gold isn't the worst place to be. It's not the BEST, either. IMO - Surprise!! Cash probably is.
Look for a great deal of dollar strength from here... perhaps for the next 6-8 months.
BTW, all this about threats to the U.S. AAA rating... what NONSENSE! There is no threat of a default. Ratings will not be impacted by the debt crisis unless the President *elects* to not pay interest on the debt. (But ratings will be impacted eventually, probably when the debt achieves parity with the GDP.
Aug. 1, 2011, 11:47 a.m. EDT
U.S. stock indexes down after data disappoints
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks fell and Treasury prices gained on Monday as a disappointing gauge of manufacturing activity and concern about a possible U.S. downgrade overcame relief over a deal to hike the federal borrowing limit.
Lawmakers were expected to vote later in the day on the agreement that includes $2.4 trillion in spending cuts over 10 years.
“The investment community is understandably relieved that a deal has apparently been reached, but a few questions hang in the balance,” said Kevin Giddis, a fixed-income strategist at Morgan Keegan.
The agreement, seen as passing the Democratic-led Senate but facing a rougher road in the U.S. House of Representatives, had investors still fretting about the risk to the U.S. AAA sovereign debt rating.
Full article: http://www.marketwatch.com/story/us-stock-indexes-rise-on-debt-deal-2011-08-01
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