Pardon my French, but !@#$ gold! Jeez! I am so frustrated right now that I broke a five-day winning streak all because investors are starting to get freaked out. Just because the Federal Reserve hinted that it’s worried about deflation, people stop putting money in stocks and start clamoring for the shiny yellow stuff.
I get that people reach for the bouillon when they’re worried about impending economic doom. And sure, there’s a lot to worry about. But c’mon, a new record high?!
I know, I know, I should relax. A 22-point loss isn’t anything to cry about, all things considered. Twelve of my stocks went up (out of thirty). One of the big drags on my portfolio was Microsoft, which raised its dividend today. But either investors already knew that was coming or the amount of the increase wasn’t enough. The stock lost 2.2 percent.
Economic conditions remain worrisome, too. The Federal Housing Finance Agency said today that home prices dropped half a percent in July. Fantastic. And although the jury’s still out on how well the Obama economic team has handled the economy, I’m still a little queasy from not knowing who’s going to replace Larry Summers and Herb Allison.
Anyway, it just sucks to have such a great streak going and see it break just because of extreme uncertainty, light volume and hardly any positive economic indicators. Would’ve preferred to keep the party going.
Till next time,
The Dow Jones Industrial Average