Gold's Advance Signals Market's Misery
By James J. Cramer
05/28/2002 01:24 PM EDT
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Gold's up so stocks are down. Hey, that makes more sense than just about anything else I have heard today. Consider that we got great consumer confidence numbers today and solid consumption figures, on top of the excellent growth figures we saw last week.
Yet this market can't rally.
That macro data, at any other time in the last decade, would have caused a rally. It would have spurred real buying.
Not now.
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Even more daunting, the banks, which had been hanging in there, are now being clobbered.
Another truly miserable day.
It is awfully hard to stay optimistic on days like today, when you have good news and the market sells off anyway. You start wondering what would have happened if the news had been bad!
But gold says it all. Gold is a pure play on terror, and the administration has succeeded in terrifying us beyond our wildest nightmares.
At least when they terrorized us when I was little, they had fallout shelters and told us to put our heads at the bottom of our cubbies and pray. (That was in public school, before the Supreme Court took that away.)
Now they just tell us to be scared.
So, instead of putting our heads in cubbies and praying, we sell stocks and buy gold.
I liked the old way better. |
