January Down, 2009 To Follow?
Stocks closed down (see news below for importance of this VERY SIGNIFICANT event.
Bonds went sideways as did the Dollar, as did oil and gasoline.
Gold soared to new recent heights – this was the confirmation of gold going higher that I was looking for. Gold is now a “buy.”
In the news today…..
A year ago, and last December, I told you about the statistical significance of having a down month of January in stock prices. Well, guess what happened this January???? It is the BIGGEST DOWN MONTH EVER. It was down 8.84% in the month. The last greatest down month was in 1916. That should get your attention. It certainly has my attention.
If you were a betting person, this means there is a very high probability that 2009 will be a down year in stocks. Also, if you were a betting person you would bet it would go down. How do you bet on that? Well, there are two fairly straightforward ways. You can short stocks or indices, or you can purchase “puts” on stocks or indices. Betting on a downward trend is very risky, so I only recommend this for people who know what they’re doing.
Here are Yesterday’s numbers:
Dow Jones 30 Industrial – 8001 (down 148 points)
10 Year Treasury Bond – 2.84% (up 0.02%)
Euro – $1.2816
Gold – $928 (up $22)
Oil – $41.68 (up $0.24)
Gasoline – $1.27 (up $0.03)
