Two days in a row DJIA up and PMs down...

mrpaseo · September 10, 2013 4:21AM

Kind of like the old days... I must admit, I am a bit confused with why the upswing in the market... Any of you smart people want to educate me?

Please.

Is this an upswing from last weeks "Profit taking"?

Steve27 · September 10, 2013 4:29AM

The driving factor is the belief there will be no US bombing of Syria; thus, oil and other commodities are going down, and the stock market is going up.

P.S. I laugh every time I hear the term "profit taking" to describe the market when it takes a downturn.

mrpaseo · September 10, 2013 4:52AM

<< The driving factor is the belief there will be no US bombing of Syria; thus, oil and other commodities are going down, and the stock market is going up.

P.S. I laugh every time I hear the term "profit taking" to describe the market when it takes a downturn. >>

Me too, that's why I put it in "" marks...

VanHalen · September 10, 2013 5:11AM

CNBC Headline at 4:00 p.m. ET "DOW has largest two day gain since June!".

NumbersUsacom · September 10, 2013 6:04AM

<< CNBC Headline at 4:00 p.m. ET "DOW has largest two day gain since June!". >>

lets all buy the dow, all those pension funds can't default or we in a big doo doo mess. Bernake wont let it happen and the Imf aint gonna let happin ether......

TwoSides2aCoin · September 10, 2013 7:06AM

When the market globally calms it's economic fears as has taken place in China and Europe the past week, and stability in places like D.C. are forced by the processes of peace throughout the world, the value of precious metals stabilize and often drop while the market graduates since it isn't dependent on gold and silver prices as much as gold and silver prices are dependent on the market's stability.

cohodk · September 10, 2013 8:06AM

Stocks represent the best relative value?

derryb · September 10, 2013 8:09AM

<< Stocks represent the best relative value? >>

At their all time high?

<< lets all buy the dow, all those pension funds can't default or we in a big doo doo mess. Bernake wont let it happen and the Imf aint gonna let happin ether...... >>

If I recall there was a bit of failure going on in 2009. Don't believe the Dow can't come down a lot faster than it went up. FED could care less about protecting pension funds.

<< I laugh every time I hear the term "profit taking" to describe the market when it takes a downturn. >>

on Wall St., it's referred to as "sheering the middle class sheep."

cohodk · September 10, 2013 8:45AM

<< Stocks represent the best relative value? >>

At their all time high?

That "all time high" is only 10% above the level of over a decade ago. What the problem with that? If you believe in inflation, then stocks should be higher just due to a general rise in prices.

Musky1011 · September 10, 2013 8:54AM

"Quantitative easing"
http://www.investopedia.com/terms/q/quantitative-easing.asp

derryb · September 10, 2013 9:01AM

<< << Stocks represent the best relative value? >>

At their all time high?

That "all time high" is only 10% above the level of over a decade ago. What the problem with that? If you believe in inflation, then stocks should be higher just due to a general rise in prices. >>

unless they are already over inflated. Maybe that "only 10% above" is telling you more than you are hearing.

Pokermandude · September 10, 2013 9:35AM

If I hadn't run into some deals this week already, I'd be saving fiat right now for a future silver purchase at the ~$21 mark.

bretts911 · September 10, 2013 9:49AM

I do see silver going up in the next few days because of what the president is going to say tonight but then again who knows
JMO
Brett

derryb · September 10, 2013 12:40PM

My only focus on short term price movement is to buy at the best prices. I am not looking for a short term sell window when it comes to physical metal.

jmski52 · September 10, 2013 10:21PM

I am a bit confused with why the upswing in the market

No need to be confused. The bias should usually be nominally up, and QE makes it more so. cohodk makes reference to "relative value" in this thread, and that is the salient issue.

My only focus on short term price movement is to buy at the best prices. I am not looking for a short term sell window when it comes to physical metal.

Bingo! You can't control which way the market is going to go but you can control whether or not you buy at a competitive price.

cohodk · September 11, 2013 5:40AM

<< 

<< << Stocks represent the best relative value? >>

At their all time high?

That "all time high" is only 10% above the level of over a decade ago. What the problem with that? If you believe in inflation, then stocks should be higher just due to a general rise in prices. >>

unless they are already over inflated. Maybe that "only 10% above" is telling you more than you are hearing. >>

That they represent a great relative value and could/should go up another 30% over the next 2 years?

derryb · September 11, 2013 5:44AM

<< 

<< 

<< << Stocks represent the best relative value? >>

At their all time high?

That "all time high" is only 10% above the level of over a decade ago. What the problem with that? If you believe in inflation, then stocks should be higher just due to a general rise in prices. >>

unless they are already over inflated. Maybe that "only 10% above" is telling you more than you are hearing. >>

That they represent a great relative value and could/should go up another 30% over the next 2 years? >>

Relative to what, a devalued dollar?

cohodk · September 14, 2013 1:34AM

<< 

<< 

<< 

<< << Stocks represent the best relative value? >>

At their all time high?

That "all time high" is only 10% above the level of over a decade ago. What the problem with that? If you believe in inflation, then stocks should be higher just due to a general rise in prices. >>

unless they are already over inflated. Maybe that "only 10% above" is telling you more than you are hearing. >>

That they represent a great relative value and could/should go up another 30% over the next 2 years? >>

Relative to what, a devalued dollar? >>

Or gold? Stocks have outperformed gold by 50% over a 2-yr period and 15% over 4 years. Asset performance clearly shows that since the beginning of QE, investors have done better with stocks than gold, which is quite contrary to what has been preached. Perhaps an ending of QE will reverse the performance? Or accelerate it?

NumbersUsacom · September 18, 2013 10:50AM

<< 

<< CNBC Headline at 4:00 p.m. ET "DOW has largest two day gain since June!". >>

lets all buy the dow, all those pension funds can't default or we in a big doo doo mess. Bernake wont let it happen and the Imf aint gonna let happin ether...... >>

Told you the Bernake wouldn't let us down, no no no don't want any more city's to give us a black eye and go bankrupt on us or teacher union schools to close.

derryb · September 18, 2013 11:30AM

<< Stocks have outperformed gold by 50% over a 2-yr period and 15% over 4 years. Asset performance clearly shows that since the beginning of QE, investors have done better with stocks than gold, which is quite contrary to what has been preached. Perhaps an ending of QE will reverse the performance? Or accelerate it? >>

Let's look at the real story on stocks, since 2000. First chart shows impressive nominal gains that give traders that warm fuzzy feeling and makes great CNBC fodder. Second chart shows reality - gains adjusted for that old bugger inflation (CPI inflation numbers used, not real world inflation that you and I know to be much worse).

Two days in a row DJIA up and PMs down...

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