UUP  (UUP) Trade Now »     Rate UUP  -  Discuss UUP  -  Add to Watch List        

Investors Flee Stocks for Gold and Safe Havens

With no signs of relief from the latest round of the ongoing financial crisis and global equity market meltdown this week, the accompanying five-day chart highlights a stock and some funds registering impressive gains in the face of massive losses in former blue chips and mega-cap stocks such as AIG. Thanks to the biggest one-day gain ever for gold today, SPDR Gold Shares (GLD) lead the gainers with an advance exceeding 15% over the last five days. As investors flee to traditional safe havens such as U.S. Treasury Bon

A Commodity Meltdown

The accompanying three-month chart illustrates a steadily strengthening US Dollar (UUP) along with a broad-based meltdown in the prices of commodities. The U.S. Oil (USO) and Natural Gas (UNG) Funds are down over 20% and 40%, respectively, while SPDR Gold Shares (GLD) and PowerShares DB Agricultural Commodities (DBA) are both down over 10% in the last three months. The correction in commodities reflects concerns over a global economic slowdown, a strengthening U.S. Dollar (with the Euro slipping below the $1.40 mark), and a drastic run-up in

• One explanation for this rally is recent dollar intervention and changes in the U.S. International Reserve Position. The U.S. Treasury website recently reported that the Exchange Stabilization Fund sold 10 billion euros and bought dollars, a move that certainly strengthened one currency against the other. It is difficult to claim that measures like this could sustain a dollar rally—the foreign exchange market is the largest in the wo

The accompanying chart compares the returns of exchange-traded funds [ETFs] representing a variety of commodities and stock indexes. The top performer in this group was the iShares Russell 2000 Small-Cap ETF (IWM), followed by the Healthcare SPDR (XLV) and US Dollar Index Bullish (UUP) which all had positive returns during the last three months. Thanks to a recent rally , the iPath Global Carbon ETN (GRN) cut some of its losses and moved ahead of the two laggards in this group – the SPDR Gold Trust (GLD) and the US Oil Fund (USO). Some other useful ETF benchmarks (listed f

I'm putting the dollar on sell until Fed Bernanke can prove he's brave enough to face the facts, and make America great again.

Oh boy... if the rest of the world gets it, why don't we?  We need to raise rates to avoid a Japan.  Who cares if people who were meant to rent in the first place lose their homes?  Let 'em.  So we have a housing market slow down, and we go back to square one.  BIG DEAL.  The whole world experienced a housing boom.  I'd rather go back to square one right now, than slooooooooooooooooooooooooowly get dragged back.

Why does the rest of the population