Two Market Responses to Obama's Speech?
After Obama's speech, the price of gold dropped over $30, and seems headed down even more as of this morning. At the same time, stock market futures headed down. The Wall Street Journal commentary said both responses were because one market - gold - believed Obama's proposal meant economic growth, while the other, the stock market - was skeptical that Obama's proposal would succeed.
Who's right? We won't really know until the plan is debated and we find out which part or parts of it pass the vote of Congress. So, really, these short term reactions don't mean much.
What it all really means is that you shouldn't pay too much attention to these short moves in any market.
In fact, both gold and stocks have been flopping back and forth now for weeks. If anything, it's just more confirmation that people don't know what to think. One day the market's up - strongly; then it's down. We haven't had any solid resolution either way.
Well, there is the fact that the Dow Industrials and Transports both exceeded their highs for this past August a few days ago. That may be sign that the stock market will look to move higher. Of course, it could move lower first, to test the recent lows it hit in August, since it hasn't really tested those yet.
As for the supposed reaction to Obama's speech, I don't really pay much attention to that sort of speculation, and neither should you.
Who's right? We won't really know until the plan is debated and we find out which part or parts of it pass the vote of Congress. So, really, these short term reactions don't mean much.
What it all really means is that you shouldn't pay too much attention to these short moves in any market.
In fact, both gold and stocks have been flopping back and forth now for weeks. If anything, it's just more confirmation that people don't know what to think. One day the market's up - strongly; then it's down. We haven't had any solid resolution either way.
Well, there is the fact that the Dow Industrials and Transports both exceeded their highs for this past August a few days ago. That may be sign that the stock market will look to move higher. Of course, it could move lower first, to test the recent lows it hit in August, since it hasn't really tested those yet.
As for the supposed reaction to Obama's speech, I don't really pay much attention to that sort of speculation, and neither should you.
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