Friday, October 16, 2009

Dow & Gold At Highs?

Ok, I'm confused. The Dow cracked 10,000 yesterday for the first time in a year, while gold finished today at $1,050/oz, which is just off an all-time high. This doesn't make a lot of sense, with gold so often being strongest when stock markets are at their weakest.

My biggest market fear is that inflation is inevitable, thanks to the rampant printing of valueless money wrought by the stimulus, so in that sense, the gold price makes perfect sense. But the stock market? Why is it so high?

I'm going to have to do my homework on this.


Roberta X said...

Here's one explanation:

varangianguard said...

Cleveland Tourism Ad

Not about gold, or the stock market. But, about Cleveland instead.

Mike Kole said...

VG- Actually, I think it's gold. :-D

That's the second one. The first was even funnier. I know where all of those locations are, for what it's worth. I like the view of the big drainage discharge at Edgewater Park. People actually surf on the discharge waters after big rains, as shown on Anthony Bourdain's foodie show's Cleveland episode.

varangianguard said...

The "At least we aren't Detroit" was pretty catchy.

Anonymous said...

Actully the market is off its highs of over 14,000, we has just retraced 50% of wg=hat was the biggest loss ever