After a gold prices dropped from records high in the previous sessions, now gold prices in 2011 bounced back to a high again on Wednesday. This came about following the announcement by the Federal Reserve that the rates of interest would hang around zero for no less than two years and as fears over the euro zone and US debt tarried.
International Paper (IP:NYSE) IP came in with a wonderful quarter and shares traded up over 2 percent on Thursday. IP is standing strong on it’s Temple Inland acquisition and investors seem to like old school stocks when the market is uncertain. IP is paying more than a 3% dividend and has nice support in the mid $26 range.
A gold ETF is an investment that is backed by gold. ETF stands for exchange traded fund. Investing in this type of fund is not the same thing as investing in actual gold. The major difference is that when one invests in actual gold, they own the gold and can receive the actual precious metal as a payout.
SPDR Financial Sector (XLF:NYSE) As usual, XLF continues to be a great read for the market today. There are conflicting opinions on the validity of the European Stress Tests and the deficit crisis still looms large. Banks seem a little oversold here, but watch XLF for a more legitimate trading read.
The major stock market indexes have become nothing more than an inverse play on the U.S. Dollar Index. Forget earnings, economic news and any other lie Wall Street has programmed us to believe. It is the U.S. Dollar Index that moves markets. Look at the chart below, you can easily see how the major stock indexes recovered after the U.S. Dollar Index sold off intra-day.
The health care industry encompasses pharmaceuticals, medical devices, medical equipment, insurers, hospitals and long term care facilities. Each offers its own unique investment opportunities and challenges. Since the new health care reform bill was passed earlier this year, the questions surrounding the impact to both the consumer and businesses, remain a constant debate.
With 2009 racing to a quick close, I thought it would be good to step back and take a reference at both the percentage performance of the S&P 500 and top AMEX Sector SPDRs beginning with January 1st and then the July 2009 lows to early December. It's a picture of sector strength for sure - but let's look a bit closer.
The United States Natural Gas Fund (NYSE: UNG) has a huge premium to its indicative value but we already knew that. Now the DB Double Long Oil ETN (NYSE: DXO) is going to liquidate and IndexUniverse’s Matt Hougan is quoted in several places as saying there will be more of this to come.
The chatter over the consumer rages on. The statistics showing the increased saving rates and reduced spending are everywhere. What do we believe or not believe becomes the question. The easiest answer is to look at the economic data and glean whatever insight we can. The retail sales data has been down, but not out.