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I was going to post a noon update, but I’ll hijack @Derf’s thread here. Woke up this morning to news Europe - particularly the U.K. was seeing heavy selling. A resurgence of Covid-19 in England and across the continent is being cited by many as the cause. I guess Boris’ plan to make Britain great again isn’t working out too well either, in light of BREXIT, as the good folks there had hoped.
At noon today the Dow was leading the way down, off nearly 800 points, more than 2.5%. Other indexes, including NASDX, holding up a bit better. Oil caved in after several good days and was down about 4% for the day. Gold to me is the shocker, being off $50 at midday to around $1900. A check on the miners using the VanEck Vectors Gold Miners ETF (GDX) shows them off only about 3% around 12:30 EDT. I somehow expected worse.
A sign of the times that even in an election year and under the current pandemic and sluggish economy Congress can’t agree on a stimulus package - though both sides want one. The death of RBG over the weekend adds more uncertainty to the uncertain political situation. (Please avoid turning this into a political debate.) I would have guessed gold would gain today based on the added uncertainty. Shows how much I know. I doubt the big players have the clout to push it down to this degree as a tactical maneuver. Would think it’s something more fundamental causing the bleeding. Sure, there’s things I’d pick up in a serious rout (real estate / DODFX) but today isn’t the day for me.
A song the late great JP McCarthy of Detroit‘s WJR used to play on some nasty market days. I’m sure Catch and others that resided in the metro area in the 70s and 80s recall JP well.
COVID cases are rising fast in Europe that could be the second wave Dr. Fauci talked about. If this doesn't brought in control quickly, we can see lockdown again as in March. We all know how this affect the business and the quick V-shape recovery. The fall is approaching that drive everyone indoor that can make the pandemic worse. Vaccine is still at least 6 months away, certainly not 6 weeks.
Looking at today’s results ... hard to make out much. Commodity related assets / funds got creamed across the board - universally it seems. While I don’t consider gold a commodity in the normal sense, the miners look to have dropped about 4%. TMSRX was flat. My intermediate duration investment grade bond fund (PBDIX) was flat as well. Most everything else I own was down.
From media reports financials got hammered today - supposedly due to the headline news overnight about big bank involvement in massive money laundering schemes. Helps explain why some more conservative (income oriented) equity funds underperformed tech and blue chips today.
Of the funds I track but don’t own, Price’s real estate fund (TRREX) got slammed with a drop of 3.5%. DSENX had a tough day, down 2.7%. All of this says to me that rates must have risen - at least in some parts of the yield curve. The rather large .78% drop in Price’s very good HY fund, PRHYX, is also surprising - especially since HY hasn’t done much this year.
COVID cases are rising fast in Europe after a steady decline over the summer. Is this a second wave and the possibity of lockdown again? Money laundering among big banks shocked the market but this has been an ongoing business for a long time and there is not much coverage. Tech bounced back this morning. Will sit back and watch.
Comments
At noon today the Dow was leading the way down, off nearly 800 points, more than 2.5%. Other indexes, including NASDX, holding up a bit better. Oil caved in after several good days and was down about 4% for the day. Gold to me is the shocker, being off $50 at midday to around $1900. A check on the miners using the VanEck Vectors Gold Miners ETF (GDX) shows them off only about 3% around 12:30 EDT. I somehow expected worse.
A sign of the times that even in an election year and under the current pandemic and sluggish economy Congress can’t agree on a stimulus package - though both sides want one. The death of RBG over the weekend adds more uncertainty to the uncertain political situation. (Please avoid turning this into a political debate.) I would have guessed gold would gain today based on the added uncertainty. Shows how much I know. I doubt the big players have the clout to push it down to this degree as a tactical maneuver. Would think it’s something more fundamental causing the bleeding. Sure, there’s things I’d pick up in a serious rout (real estate / DODFX) but today isn’t the day for me.
A song the late great JP McCarthy of Detroit‘s WJR used to play on some nasty market days. I’m sure Catch and others that resided in the metro area in the 70s and 80s recall JP well.
Slip Slidin Away
Derf
BUFFALO DISCOVERY -.03 or - .11% I happy to see that.
Derf
From media reports financials got hammered today - supposedly due to the headline news overnight about big bank involvement in massive money laundering schemes. Helps explain why some more conservative (income oriented) equity funds underperformed tech and blue chips today.
Of the funds I track but don’t own, Price’s real estate fund (TRREX) got slammed with a drop of 3.5%. DSENX had a tough day, down 2.7%. All of this says to me that rates must have risen - at least in some parts of the yield curve. The rather large .78% drop in Price’s very good HY fund, PRHYX, is also surprising - especially since HY hasn’t done much this year.
Well ... I’m moved to do nothing.