Gold hits a new high and the Dow touches 10,000. These two usually go separate ways. What's good for the gold bugs usually isn't good for stocks. Is this just speculation on the part of both? I think so. I ain't buying into either. There's going to be a correction in one or another ,but I'm not smart enough to know which.
This is all a direct result of the Feds stimulativle money policies, Congress throwing borrowed money at the problems and the Administration's desire to let the dollar weaken.The remedy for both bubbles is Fed tightening but that looks a long way off.I am neither buying or selling stocks or bonds but I do own some energy stocks which are getting a nice ride from all this and most bonds are still gradually trending higher- but we have lots of bubbles and there will be hell to pay in time.I have taken to the sidelines with some cash and cash equivalents and am just watcing all this in awe.If anything I will continue to lighten up if this continues. Of course running to a falling dollar is not all that great either but it's a heck of a lot better than going through the crisis last year.RRW