Deeper In The Muck
Most markets were sideways today – awaiting the election. Stocks were no exception ending down 5 points. Bonds made a slight gain in price – with lowering interest rates. Gold and the Dollar were both slightly up.
Oil, on the other hand, made a large dip in price – and gasoline made a near term LOW in price – so this means for you to expect your gasoline prices to continue going down. Great news.
In the news today…..
Here is the news that points to the recession, and what you can expect to continue as we go deeper in to muck:
- Circuit City will be closing 155 stores – about 20% of their stores.
- Ford sales were down 30% last month.
- GM sales were down 45% last month.
- US Manufacturing sector hit the lowest level since 1982 (when we were in a deep recession). I think we will be getting much worse than 1982, so the economy will be heading for the “depression” type thoughts.
In the international news, the Chinese manufacturing activity was way down – because of a big worldwide slowdown on exports from China. The Chinese have dropped their interest rates several times in the last month to try to counteract this bad news for its economy. You see – the Chinese have a big problem. They must continue to create a lot of new jobs, and the export market was their engine to create those jobs. They must continue to create those jobs because the country folk still want the “good life” that they see their cousins having in the cities. The Chinese are concerned about turmoil of the population – so you will see a lot of activity in China to keep their economy going.
Here are Yesterday’s numbers:
Dow Jones 30 Industrial – 9325 (down 5 points)
10 Year Treasury Bond – 3.97% (down 0.07%)
Euro – $1.2649
Gold – $727 (up $9)
Oil – $63.91 (down $3.90)
Gasoline – $1.36 (down $0.13)