Like we mentioned in our blog of a week ago, the market has been going down and has wiped out all the gains of the previous week. Out of the 4 stocks which are keeping Nasdaq, QQQ and SPY up , to day Amazon is up almost 100 points . DJT and DJ utilities are near the lows rather than near the highs. This is not the kind of market that can continue to go up but at the start of a major decline. We have had a major decline in Gold and we still continue to recommend that you should have some gold and gold mining stocks in your portfolio because of extreme bearish sentiment.
There were more stocks down than up for the last 5 days and that trend will continue. All rallies will be short lived. Any negative earnings can easily decimate your portfolio. Look at Biogen and Apple.
China decline will have a major effect on economies around the world specially on Japan, Eurozone and USA. The chaos cannot be stopped by more debt or easier terms ( how can you go below zero interest rates) China has been doing many things to control the damage in Chinese stock market but it will fail. Government intervention does not work anywhere.
Here is an interesting article about why you must buy physical gold and gold mining shares
http://seekingalpha.com/article/3355485-what-you-need-to-know-about-chinas-gold-holdings
There were more stocks down than up for the last 5 days and that trend will continue. All rallies will be short lived. Any negative earnings can easily decimate your portfolio. Look at Biogen and Apple.
China decline will have a major effect on economies around the world specially on Japan, Eurozone and USA. The chaos cannot be stopped by more debt or easier terms ( how can you go below zero interest rates) China has been doing many things to control the damage in Chinese stock market but it will fail. Government intervention does not work anywhere.
Here is an interesting article about why you must buy physical gold and gold mining shares
http://seekingalpha.com/article/3355485-what-you-need-to-know-about-chinas-gold-holdings
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