Carnage in Equities
The equity markets are undersiege and every major sector is in correction territory for the first time intwo years. Energy, materials, tech, and financials are getting creamed.Treasury bonds are in a bear market, and gold is running in place but losingground every day.
The safety assets are notoffering much security, especially the Treasuries as they get pounded dailywith rising rates. For years gold has been known as the ultimate hedge againstyour portfolio, which is not the case. Gold is a great hard asset that everyportfolio should have, but it protects against nothing.
The top of both equities and goldcame within four days of one another. Jan. 25 was the high for gold, and Jan.29 was the high in equities. Since then, equities are down 10% and gold is downalmost 4%. We look for the selling to continue in both metals and equities.Gold should test $1,300 and possibly $1,270.
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