Discover Yahoo! With Your Friends

Explore news, videos, and much more based on what your friends are reading and watching. Publish your own activity and retain full control.

To get started, first

YOUR FRIENDS' ACTIVITY

    Stay Gold, Pony Boy And Bite Into China With Netease

    By John Dobosz | Forbes – Wed, Jul 13, 2011

    A two-pronged fork of good news on China and the Fed's propensity for another round of monetary gymnastics hit stocks like a tonic spritzer Wednesday morning, sending all major U.S. averages higher out of the gate.  Bulls hung on to higher prices by day's end though the rally faded into the close.

    China's GDP release for the second quarter of 2011 showed a 9.5% year-over-year pace of growth, just a panda's hair higher than expectations.

    [forbesvid id="fvn/market-blaster/china_gold_7_13_2011" showid="80"]

     

    Growth in China's interior provinces picked up, suggesting that China's economy was not collapsing under the weight of multiple rate hikes and higher reserve requirements from the People's Bank of China.  Consumer inflation in China is running in the 5% range and the central bank is keen to bring it down closer to 4% without bursting the bubble in real estate.   So far so good.

    By mid-morning, Ben Bernanke before the House Financial Services Committee where he sparred with Ron Paul over gold-as-money.  See Agustino Fontevecchia's "Bernanke Fights Ron Paul In Congress: Gold Isn’t Money."

    The theatrics and semantics were amusing but they bury the lead that Bernanke says the Fed is prepared for another round of quantitative easing if readings on economic vitality don't improve soon.

    Gold hit a new high of $1,579 an ounce and the rest of the commodity complex cheered like it was another Jackson Hole speech--the one last August that ignited a gargantuan seven-month march higher in stocks and commodities.

    [youtubevid id="TwJ-ppxCGPk"]

    The technical picture for gold looks strong with the fresh breakout to new highs.  Might want to get into the SPDR Gold ETF (GLD) if you're not already strapped into the yellow metal already.  Miners have been laggards.  If the bull market roars to $2,000 and beyond, you're sure to see bullish action in Goldcorp, Newmont Mining, Barrick Gold and all the junior minors.

    Don't forget, however, that, as Pony Boy admonishes in The Outsiders, "Nothing gold can stay." When gold bull markets end, they do so suddenly and violently.  

    [youtubevid id="QpIcPde4rAo"]

    From its January 1980 peak at $850 per ounce, gold tumbled nearly 40% in the span of a few days and bounced around between $300 and $400 for the better part of two decades.  Then again, Paul Volcker was Federal Reserve chairman back then.  I don't think anybody would confuse Bernanke or his policies for those of the great cigar-chomping inflation slayer.

    Also Read
     

    There are no comments yet

    [ [ [['Connery is an experienced stuntman', 2]], 'http://yhoo.it/KeQd0p', '[Slideshow: See photos taken on the way down]', ' ', '630', ' ', ' ', ], [ [['Connery is an experienced stuntman', 7]], ' http://yhoo.it/KpUoHO', '[Slideshow: Death-defying daredevils]', ' ', '630', ' ', ' ', ], [ [['know that we have confidence in', 3]], 'http://yhoo.it/LqYjAX ', '[Related: The Secret Service guide to Cartagena]', ' ', '630', ' ', ' ', ], [ [['We picked up this other dog and', 5]], 'http://yhoo.it/JUSxvi', '[Related: 8 common dog fears, how to calm them]', ' ', '630', ' ', ' ', ], [ [['accused of running a fake hepatitis B', 5]], 'http://bit.ly/JnoJYN', '[Related: Did WH share raid details with filmmakers?]', ' ', '630', ' ', ' ', ], [ [['accused of running a fake hepatitis B', 3]], 'http://bit.ly/KoKiqJ', '[Factbox: AQAP, al-Qaeda in Yemen]', ' ', '630', ' ', ' ', ], [ [['have my contacts on or glasses', 3]], 'http://abcn.ws/KTE5AZ', '[Related: Should the murder charge be dropped?]', ' ', '630', ' ', ' ', ], [ [['have made this nation great as Sarah Palin', 5]], 'http://yhoo.it/JD7nlD', '[Related: Bristol Palin reality show debuts June 19]', ' ', '630', ' ', ' ', ], [ [['have made this nation great as Sarah Palin', 1]], 'http://bit.ly/JRPFRO', '[Related: McCain adviser who vetted Palin weighs in on VP race]', ' ', '630', ' ', ' ', ], [ [['A JetBlue flight from New York to Las Vegas', 3]], 'http://yhoo.it/GV9zpj', '[Related: View photos of the JetBlue plane in Amarillo]', ' ', '630', ' ', ' ', ], [ [['the 28-year-old neighborhood watchman who shot and killed', 15]], 'http://news.yahoo.com/photos/white-house-stays-out-of-teen-s-killing-slideshow/', 'Click image to see more photos', 'http://l.yimg.com/cv/ip/ap/default/120411/martinzimmermen.jpg', '630', ' ', 'AP', ], [ [['Titanic', 7]], 'http://news.yahoo.com/titanic-anniversary/', ' ', 'http://l.yimg.com/a/p/us/news/editorial/b/4e/b4e5ad9f00b5dfeeec2226d53e173569.jpeg', '550', ' ', ' ', ], [ [['He was in shock and still strapped to his seat', 6]], 'http://news.yahoo.com/photos/navy-jet-crashes-in-virginia-slideshow/', 'Click image to see more photos', 'http://l.yimg.com/cv/ip/ap/default/120406/jet_ap.jpg', '630', ' ', 'AP', ], [ [['xxxxxxxxxxxx', 11]], 'http://news.yahoo.com/photos/russian-grannies-win-bid-to-sing-at-eurovision-1331223625-slideshow/', 'Click image to see more photos', 'http://l.yimg.com/a/p/us/news/editorial/1/56/156d92f2760dcd3e75bcd649a8b85fcf.jpeg', '500', ' ', 'AP', ] ]
    [ [ [['did not go as far his colleague', 8]], '29438204', '0' ], [ [[' the 28-year-old neighborhood watchman who shot and killed', 4]], '28924649', '0' ], [ [['because I know God protects me', 14], ['Brian Snow was at a nearby credit union', 5]], '28811216', '0' ], [ [['The state news agency RIA-Novosti quoted Rosaviatsiya', 6]], '28805461', '0' ], [ [['measure all but certain to fail in the face of bipartisan', 4]], '28771014', '0' ], [ [['matter what you do in this case', 5]], '28759848', '0' ], [ [['presume laws are constitutional', 7]], '28747556', '0' ], [ [['has destroyed 15 to 25 houses', 7]], '28744868', '0' ], [ [['short answer is yes', 7]], '28746030', '0' ], [ [['opportunity to tell the real story', 7]], '28731764', '0' ], [ [['entirely respectable way to put off the searing constitutional controversy', 7]], '28723797', '0' ], [ [['point of my campaign is that big ideas matter', 9]], '28712293', '0' ], [ [['As the standoff dragged into a second day', 7]], '28687424', '0' ], [ [['French police stepped up the search', 17]], '28667224', '0' ], [ [['Seeking to elevate his candidacy back to a general', 8]], '28660934', '0' ], [ [['The tragic story of Trayvon Martin', 4]], '28647343', '0' ], [ [['Karzai will get a chance soon to express', 8]], '28630306', '0' ], [ [['powerful storms stretching', 8]], '28493546', '0' ], [ [['basic norm that death is private', 6]], '28413590', '0' ], [ [['songwriter also saw a surge in sales for her debut album', 6]], '28413590', '1', 'Watch music videos from Whitney Houston ', 'on Yahoo! Music', 'http://music.yahoo.com' ], [ [['keyword', 99999999999999999999999]], 'videoID', '1', 'overwrite-pre-description', 'overwrite-link-string', 'overwrite-link-url' ] ]

    News For You

    Loading...