With All The Hoopla Over The Fed's Rate Cut, Why Is No One Talking About THIS?

There's an elephant in the room that no one's talking about in the midst of the Fed's rate cut - which we finally got past with their "momentous" announcement that it would be 50 basis points. Yippee!

Naturally, the stock market jumped to the moon the next day. Why not? After all, since HFT's (high-frequency trading outfits) dominate trading, it's likely they've got some sort of algorithm programmed into their computers that triggered the buying spree. And it's very possible they've got that algorithm set to pull the rug out from anyone who takes this latest record-setter of an upsurge as a cue to buy stocks.

Yeah, that's how these people work. And it behooves us normal folks to understand the game that's grinding our markets day in and day out. If you're unaware of all this, put your money in the bank. Or, if aware of it, figure out how to stay out of the way when the HFTs do their dastardly deeds.

But back to the rate cut hoopla.

Setting aside the HFTs, let's say you're in the camp that believes the stock market has some rational connection to the world as it really is. And let's say you're also in the camp of those who believe that lower rates are good for both the economy and the markets. Well, in that case, you'll be a buyer, one assumes. Lower rates = higher stock prices, right?

Of course, history throws a monkey wrench into this for the most part. It seems that at the end of big bull markets, after the Fed has raised rates for a spell, the rate cutting ultimately results in something or things of the nastier variety - i.e., not a continued stock bull market, or a roaring economy. They may goose the markets for a bit, and they may feed the "economy is strong and getting stronger" crowd for a while. But the other shoe eventually drops and...well, we'll have to see just what the other shoe brings, won't we?

Meanwhile, with all this gyrating and celebrating, no one is talking about - you may have guessed it - Gold. 

Indeed, if you did guess it, congrats. Because the financial media and the experts and assorted market gurus out there pretty much won't glance towards either Gold or Silver. 

No surprise here. Gold typically remains off most folks radars until it's in the last phase of roaring bull market, when the price has already shot to the moon. That's when it elbows everyone else aside and beckons the late suckers to pile in.

But we're not there yet.

We're simply in the midst of a powerful Bull Market in Gold that began around the turn of the millennium and has continued now. We've even had the required huge, harrowing correction that these monster Bull Markets bring to shake off those who haven't the stomach to ride the Bull.

OK, let's ditch the market blather. The fact is Gold have been setting record highs for weeks now. And you hardly hear a peep.

So a question: Which market would you chose to put your hard-earned money into: the one that's setting record highs and everyone's talking about or the one that's setting record highs and no one's talking about?

Something to think about.