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Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Monday, June 1, 2020

Gold bottomed? Market softening?

The S&P 500 hit Friday 3049, my high end target was 3100.  With all the chaos going on, I look at the futures this morning thankful they aren't down huge.

I am going to dump as much as possible on the open, taking advantage of this gift.  We may even go to S&P 3200.  But after a gain of 39%  from March 21st to May 29th, with interest rates near zero, that is pretty good!

Gold also looks like it may have bottomed within the first week.  My concern is if the overall market tanks, I have a hard time believing that gold miners advance into the pullback.   Owning GLD (gold ETF), Bitcoin, or other hard assets may appreciate in a downturn.  Gold miners will quickly rebound if there is any weakness in prices.   But who the heck knows, maybe this time gold miners surprise and advance if rest of the market reprices.

I am going to stop posting until there is clarity.   My posts over the last few weeks have been all over the place as the market claws to the top.  I wouldn't be surprised if the market in 6 weeks hits 3200 before retreating.  I also wouldn't be surprised if 3049 on Friday was the top. (close enough to the 3100 target for me).   Guessing when the public 'market exuberance' ends to the day is beyond me.

Good luck!

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