Carnage in Equities
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.