(no subject)
Mar. 19th, 2009 08:00 pm"Some media reports are trying to spin today’s stock market activity as a “rally” tied to what is purported to be good news — that the U.S. Federal Reserve will be buying $300 billion in U.S. Treasury bonds.
Don’t believe the hype. There was no stock market rally today.
The Dow and S&P 500, indexes of dollar denominated stock prices, increased by only 1.2% and 2.1%, respectively, on the same day gold futures rose 4.2% — which means stocks declined in value today, but not as fast as actual dollar bills did." (italics mine)
- Brad Spangler, Mar 18th
Signals of increased monetary expansion tell people to get out of dollars. This can be made to look to the untrained eye like an increase in overall economic demand, but is actually just people shifting out of cash reserves.
Don’t believe the hype. There was no stock market rally today.
The Dow and S&P 500, indexes of dollar denominated stock prices, increased by only 1.2% and 2.1%, respectively, on the same day gold futures rose 4.2% — which means stocks declined in value today, but not as fast as actual dollar bills did." (italics mine)
- Brad Spangler, Mar 18th
Signals of increased monetary expansion tell people to get out of dollars. This can be made to look to the untrained eye like an increase in overall economic demand, but is actually just people shifting out of cash reserves.