It’s been an up-and-down week on Wall Street, with Monday’s steep sell off in gold rattling the markets and investor confidence. The precious metal tumbled over 9%, shedding more than $100 per troy ounce on Monday and marking its biggest one-day percentage drop in 30 years. Meanwhile, disappointing reports from China weighed heavily on the markets; economic growth in the first quarter came in at 7.7%, while analysts were expecting GDP growth to be 8%. Several other mixed economic and earnings reports had the CBOE Volatility Index (VIX) soaring above the 14 mark [see 10 Questions About ETFs You've Been Too Afraid To Ask].
Coffee over newspaper
- What Happened After Gold’s Similar 2-day Plunge 30 Years Ago? at StreetSmartPost
During Monday’s trading session, gold plummeted over 9%, marking its biggest one-day percentage drop in 30 years. In this article, Sy Harding takes a look back at what happened after the big gold plunge in 1983.
- What Are Gold’s Fundamentals? at The Big Picture
Another insightful gold piece; in this article, Barry Ritholtz discusses what he thinks are the fundamentals of gold, and whether or not the precious metal has “true” intrinsic value.
- Researchers Finally Replicated Reinhart-Rogoff, and There Are Serious Problems at Next New Deal
One of the most cited statistics in the public debate during the finanical crisis was that countries with debt-to-GDP ratios above 90% have a slightly negative average growth rate. In this article, Mike Konczal discusses a recent paper that discredits Reinhart and Rogoff’s popular study.
- Valuation Based Equity Market Forecasts – Q1 2013 Update at GestaltU
Here is an insightful trading piece that discusses the “physics” of investing in expensive markets. It shows how using simple statistical models can shed light on what the future may hold over meaningful investment horizons.
- Another Spring Slowdown? at Tim Duy’s Fed Watch
Though major U.S. equity indexes have continued to push into uncharted territory in recent months, there have been several red flags seen on the global economic front. In this article, Tim Duy takes a look at these key issues and how it may affect policy makers’ decisions on when to end QE.
- Chartist Corner: Four Charts That Should Scare The Bulls at Schaeffer’s Trading Floor
In recent weeks, a tug-of-war between the bulls and the bears has taken center stage, as mixed economic data from around the globe hit the streets. In this article, Ryan Detrick highlights four charts he thinks every bull should be concerned about.
- Shale Oil Is a Big Game Changer for Dow-to-Gold Ratio at Financial Sense
In this article, Gary Dorsch tries to put the Dow Jones Industrial Average’s recent rally in perspective, highlighting the relationship between gold, shale oil and the index’s price movements.
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Disclosure: No positions at time of writing.
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