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Carnage in Equities

Commentaries & Views

The equity markets are under siege and every major sector is in correction territory for the first time in two years. Energy, materials, tech, and financials are getting creamed. Treasury bonds are in a bear market, and gold is running in place but losing ground every day.

The safety assets are not offering much security, especially the Treasuries as they get pounded daily with rising rates. For years gold has been known as the ultimate hedge against your portfolio, which is not the case. Gold is a great hard asset that every portfolio should have, but it protects against nothing.

The top of both equities and gold came within four days of one another. Jan. 25 was the high for gold, and Jan. 29 was the high in equities. Since then, equities are down 10% and gold is down almost 4%. We look for the selling to continue in both metals and equities. Gold should test $1,300 and possibly $1,270.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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