Call (866) 878-2881 to learn more about our investment strategies.

Commentaries & market updates.

Three Strikes and You’re Fired

Three Strikes and You’re Fired

In baseball three strikes send you back to the dugout. In California courts three strikes send you to the penitentiary for life. However, on Wall Street, three strikes simply earn you a fresh set of pitches. When the third quarter began there was virtual unanimity on Wall Street that stocks would out-perform bonds; that commodities prices, particularly oil, would recede; and the U.S. dollar would rise in value. Not only did Wall Street miss wildly, they fanned three softballs lobbed right down the middle.

Strike one. During the third quarter all three of the major U.S. stock market indexes lost ground, with the Dow, S&P, and NASDAQ losing 3.42%, 2.01%, and 7.37% respectively. Bonds however, produced nominal gains of about 3.5% on the quarter, with the yield on 10 year treasures falling by about 50 basis points.

Strike two. Oil prices, instead of falling, soared to all time highs, closing just under $50 per barrel, gaining 36% on the quarter. Commodities prices in general also rose sharply during the third quarter, with the CRB Commodities Index rising 7%, closing at a twenty four year high, and the Goldman Sax Commodities Index rising 13%, closing at a new all-time high. Since their lows in 2001, these two indexes are up 55% and 110% respectively. Gold prices rose by over 6% on the quarter and the Philadelphia Gold and Silver Index (XAU) gained 18%.

Strike three. Rather than rallying the U.S. dollar lost value again, with December U.S. dollar index futures ending the quarter on fresh life-of-contract lows.

Amazingly, despite being zero for three on the quarter, the advise and predictions of many of these “experts” are still eagerly sought after by investors and the media. What both groups should do is take all these Wall Street “experts” into the board room, wave their fingers in they faces, and say “you’re fired!”

Sign up for our Free Reports & Market Updates.

You are now leaving europac.com

We are providing a link to the third party's website solely as a convenience to you, because we believe that website may provide useful content. We do not control the content on the third-party website; we do not guarantee any claims made on it; nor do we endorse the website, its sponsor, or any of the content, policies, activities, products or services offered on the website or by any advertiser on the site. We disclaim any responsibility for the website’s performance or interaction with your computer, its security and privacy policies and practices, and any consequences that may result from visiting it. The link is not intended to create an offer to sell, or a solicitation of an offer to buy or hold, any securities.

You will be redirected to
in 3 seconds...

Click the link above to continue or CANCEL