Over reactionAnother over reaction by the markets it seems. I was pretty sure gold would go to $2000 today. But then Ameircan GNP was up in the 2nd quarter more than expected. Now GNP measurement is notoriously inaccurate, but maybe the algos don't know that. And jobs were pretty neutral, slightly better than expected , by whom I don't know. What these people, who do the expecting ,
expect, is vitally important , to the algos anyway. And then American consumers seem to be continuing to do what they do best - consume. Many live pay cheque to pay cheque and as long as there is one, a pay cheque that is, they will continue to spend it. Can't blame then since so many of those pay cheques are from McDonalds, Wendy's , etc. and barely cover living costs.
Guess it was the combination of all three, on the same day, that broke the markets heart, re gold. But tommorow is another day, and more data. EDV down almost 4%, on low volume for sure, is crazy, but that is how it works these days it seems.