Wednesday, September 17, 2008
Gold, Stocks and The Dollar, Oh My!
The past month has been rather confusing on the investment front. I had been in gold stocks and they plummeted like the dickens into Hades. Presumably gold went down because the dollar went up and oil went down. Now mostly in cash, I watch gold shoot up as the S&P 500, the Nasdaq and the Dow take their own ride into perdition. What new torments await investors in the first rung of hell? Does the Dow decline further and gold continue upward? Has the dollar ended its six-week ascent? Are foreign central banks and the Fed playing games with the dollar? Why would the dollar ascend and gold and oil decline weeks before the bankruptcy of Lehman Brothers and the subsidy of AIG and Freddie Mac? Do we have a free market, or a pretense of one, with the Wicked Wizard of the East making sport of it? With the Dow down better than 700 points this week, is it good idea for the Wizard to remain behind the curtain, pulling strings?