2006 is fading away rapidly!
According to the Resource Investor, the UAE announced that it was shifting from dollars to Euros. The UAE central bank is to increase their 2% holding of Euros by 8% by September. This does not sound like much, but it is a move with an announced target of quantity and time. Thus, the UAE join s the ranks of other Mid-East and Asian central banks which are doing the same. Therefore, the dollar is back on a slope which is getting more slippery with each such move. Is this the beginning of the big move out of the dollar reserves? We will know in time. However, this trend will not be good for the dollar. The dollar bulls will have to search more diligently to fuel their false hopes.
Gold has responded nicely and is up for the last 24 hours. The high was $635 yesterday and the low was $623.90. It is now $633.20. All mining stocks are experiencing renewed vigor. DROOY was as low as 0.85 last week, but is up to 0.91 now. I still believe it is a buy at this level. The Dow is off a mere 16.18 to 12494.47.
Bonds, general stocks, precious metals, defense stocks, and most commodities are up. It seems that investors in every market believe that this bullish trend will last forever. Over time, it is impossible for every one of them to succeed. This is a euphoria which cannot last. Some segments will be winners and others losers.
Remember that this is a low volume season with many brokers, traders, fund managers, and investors on vacation.
The Lord knew what He was doing when He gave us seasons, weeks, months, and years. One the first of each week, we are renewed by corporate worship through hearing the word, participating in the sacraments, and worshipping the living God. This should be seen as a new beginning. The first of each month similarity gives us another new beginning. Then the New Year gives us another new beginning. These should be times at which we give particular praise to God for the newness of our lives and the opportunity to move forward with greater enthusiasm. Praise the Lord for new beginnings.
Best to each, Doug
Gold has responded nicely and is up for the last 24 hours. The high was $635 yesterday and the low was $623.90. It is now $633.20. All mining stocks are experiencing renewed vigor. DROOY was as low as 0.85 last week, but is up to 0.91 now. I still believe it is a buy at this level. The Dow is off a mere 16.18 to 12494.47.
Bonds, general stocks, precious metals, defense stocks, and most commodities are up. It seems that investors in every market believe that this bullish trend will last forever. Over time, it is impossible for every one of them to succeed. This is a euphoria which cannot last. Some segments will be winners and others losers.
Remember that this is a low volume season with many brokers, traders, fund managers, and investors on vacation.
The Lord knew what He was doing when He gave us seasons, weeks, months, and years. One the first of each week, we are renewed by corporate worship through hearing the word, participating in the sacraments, and worshipping the living God. This should be seen as a new beginning. The first of each month similarity gives us another new beginning. Then the New Year gives us another new beginning. These should be times at which we give particular praise to God for the newness of our lives and the opportunity to move forward with greater enthusiasm. Praise the Lord for new beginnings.
Best to each, Doug
posted by Doug @ 10:30 AM
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