Gold is back in favour, at least at the moment. Will gold now regain its rightful status (and continue to appreciate)? (This story was first published for subscribers last week)
While the ink’s not dry and no one has signed anything yet, the latest news from Washington is that a plan has been agreed upon and is now being drafted.
Dow and S&P500 closed higher in anticipation of a positive outcome from the political process regarding The Plan. But we’re still waiting for The Announcement…
The Dow rallied 200 points as The Plan moved another inch closer to agreement, but it is a very watered down model that Paulson may have to accept.
Where is the US dollar going? Standard Chartered thinks that it all comes down to your investment timeframe.
All financial markets were as good as unchanged last night as the world goes into limbo. A resolution on The Plan does not yet look imminent. (Locked for subscribers until 10:00 AEST)
With the market bailout expected to cost up to US$1 trillion, the US’ huge budget deficit is set to get a lot worse, which should be bad news for the US dollar.
The Dow managed to hold square by 3pm but a lack of progress on Capitol Hill saw a late sell-off of another 161 points. (Locked for subscribers until 10:00 AEST)
The Dow fell 372 points as Paulson’s plan was met with uncertainty. The US dollar was trashed. Oil made an artificial spike.
It will involve maybe a US$1 trillion or more. The details are still being decided upon. It is hoped the plan can be rushed through Congress. Will it work?