Sunday, June 3, 2012

Weekend Update 6-3-12: Gold, Oil, Copper, S&P500 & More....

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Sell in May and go away? May have been the action to take in this market. With Asian, European and U.S. markets declining by 8%, 7% and 6% respectively. The terrible PMI numbers out of China and Europe, combined with the weaker than expected U.S. May non farm payrolls data and other economic data, confirms that the global economy is contracting  rapidly.

Brent crude oil is trading below US$100 and WTI crude nearing $80. Copper is lower, but probably has been shorted to such an extent that it fell just 4.0% last week. On the other hand, sovereign bond in the major markets are surging to levels, which suggest a major bubble has formed, as the fear trade continues. Will June offer any reprieve to equity investors?

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Buy Into Weakness, or Preserve Your Money?
Between weakness in Europe and a weak U.S. unemployment rate, how can investors find profits? Margie Patel, Wells Fargo Funds Management; Doug Sandler, RiverFront Investment Group; Tom Belesis, John Thomas Financial CEO, weigh in.


Fear Index Link

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