Gold up - stocks down June 16, 2022
There is not a direct correlation between the value the marketplace places on gold - and the value the marketplace places on a publicly traded company whose income is derived principally from gold production.
On this day what was going on in the stock market had relatively more effect on Karora than what was happening in the gold market. Gold was up nicely - while the stock markets continued to tumble.
“The Toronto Stock Exchange had its worst day in more than two years on Thursday as investors faced the reality of sharply higher interest rates to bring down stubbornly high inflation.
The benchmark Canadian stock index lost 618 points to close below 19,000 for the first time since April 2021. In percentage terms, it was the worst day for Canada's stock market in two years.”
……
“All 11 sub-indexes of the TSX were lower, from energy to banking, and from health care to technology.
Things were even worse on Wall Street, where the Dow Jones Industrial Average lost 700 points or more than three per cent to dip below the 30,000 level for the first time since January of 2021.
‘Those are psychological barriers,’ said Anthony Scilipoti, CEO of Toronto-based Veritas Investment Research. ‘The problem with selling is that it begets selling.’
The broader S&P 500 had its worst day since September 2020, losing 123 points or more than three per cent.
Both the S&P and the technology-focused Nasdaq have both officially entered into bear markets, which means they have declined by 20 per cent or more from the peak.”
[Full article]
https://www.cbc.ca/news/business/tsx-markets-dollar-1.6491045