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Market Update June 8th, 2011

Posted on | June 8, 2011 | Comments Off



The markets have now locked in five straight weeks of declines.  This hasn’t happened for several years.  While a “correction” is indeed in play, we’re really only looking at a 5-6% decline in the Dow at this point.

We welcome this correction, and am looking for it to potentially hit at least 10% in terms of the decline from the peak.  I don’t see how we “crash” 30%+ unless there is a major crisis (which isn’t completely out of the question).  The volatility is what we predicted in conjunction with the timing of QE coming to a close.  It should continue until possibly another round of easing is announced later this year.

Meanwhile, gold prices are holding steady in the $1540 range.  This of course means that the dow/gold ratio is heading lower.  This is a long-term trend that remains in tact.

Keep your eyes pealed for attractive opportunities.

Category: Market News