LONDON, Nov 1 (Reuters) – Gold buckled under pressure from a stronger dollar on Tuesday after the Greek prime minister shocked financial markets by calling a referendum on an agreed bailout package and as the collapse of broker MF Global
While the bulk of the global investment community worries about Greece (where there are more Porches than taxpayers reporting earnings of $50,000+ Euros), and trading gold, the action (as usual) is elsewhere. A surefire sign that bullion fever is past its prime? When the government decides to get in on the action!
The Royal Canadian Mint is capitalizing on the gold rush by offering a new bullion investment that is raising questions among some who staked their claims first. Best known for its coins and bullion, the Mint is tapping into the growing popularity of bullion by delving into the crowded market for exchange traded gold with a $250-million issue of gold receipts that will trade on the Toronto Stock Exchange.
Someone managing to convince the mint to get into the funds business is a red flag to be sure.. Also, when the chart of the price looks more vertical than a lightning rod, what happens when a storm really does come?
On the flipside? Look for evidence of real improving circumstances (a catalyst for a change in valuation for the better – like improving earnings) that are somewhat off the radar screen.
Nov 1 (Reuters) – Pfizer Inc’s quarterly results came in much better than expected, as sales of its medicines accelerated in emerging markets and in the nutritional products and animal health businesses it plans to divest. The world’s largest drugmaker raised its full-year 2011 profit forecast and reaffirmed that 2012 earnings will be little changed from this year, even after it cedes sales from its $10 billion-a-year Lipitor cholesterol fighter once cheaper generics begin flooding U.S. pharmacies on Nov. 30.
A chart evidencing the potential for lots of upside is far more comforting than the alternative. And there you go! That’s pretty much all you need to know to pick good stocks, and sectors (and even countries – like the U.S. market right now is the place to be) can be analyzed in a similar fashion. Hope the minute you’ve spent reading this was worthwhile.