Gold the immovable object, but to stocks let no one object

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Gold the immovable object, but to stocks let no one object

"Immovable" indeed is our Gold: having closed one week ago at 1927.7, price settled yesterday at 1927.6 ... the 10¢ loss of benefit only to the dastardly Short whose wealth thus increased by ten bucks. Lah-dee-dah.

The worse the economic news becomes, the higher the S&P climbs. Indeed, we're a bit dubious about this past Thursday's initial report of StateSide Gross Domestic Product for Q4 coming in at an annualized growth rate of +2.9%, considering the recent plunge in the Economic Barometer as herein dramatically depicted a week ago, .

Spot on, Squire, as ostensively"the herd" knows the weakening economic metrics including the prior week's deflationary reads shall lead to the Federal Reserve slowing its FedFunds rate increases, then pausing, and then"pivoting" back down. Thus with easy money ultimately back in the balance, "the market must go higher" and hence the illusion of "Change".

Regardless, are earnings growing? Thus far for Q4, 123 S&P 500 constituents have reported: only 57% of those bettered their earnings from a year ago; which means 43% of the world's wealthiest Index constituents haven't grown. Not a healthy growth picture there, indeed ranking fifth-worst across the past 23 quarters. Oh yes, there is some earnings growth: the median year-over-year improvement is +5% ...

Also bear in mind as well that come Monday, Gold gets a 16-point premium boost as trading volume rolls from the February contract into that for April. And speaking of moving in the right direction, if one has recently been Long the bulk of the BEGOS Markets, one has done well across the past 21 trading days as we go 'round the horn, every component sporting a positive linear regression trendline, with the baby blue dots depicting the consistency of those trends.

 

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