Wednesday, August 10, 2011
Dow off over 500
We gave back everything we gained yesterday, plus about 100 points. This puts us down about 700 points so far for the Dow this week. Gold spike to above $1,800. I am sort gold through the GLL (short gold ETF). I believe gold is grossly over-bought and will get killed as soon as the uncertainty subsides. It's ugly out there, but there is no reason to panic and no reason for this overreaction. It is clear that small investors are driving the direction of the markets day to day. I am not a trader. I am an investor, and I see value here. Corporate profits have been very strong for several quarters, and most importantly, top-line revenues for the first quarter since the recession ended were strong. People and companies are buying stuff, which is good for companies and good for the economy. We will get past this!