MENU

ASX flat, Dow down, gold bubble continues to deflate

The S&P/ASX 200 ended Wednesday relatively flat, a decent performance when compared to the Dow and The Motley Fool’s old whipping horse, gold.

Remember the good old days, when the sharemarket just went up? The golden days, just over a week ago, when Ben Bernanke hinted that “supportive policies” from the Federal Reserve would continue?

What the Fed giveth, the Fed taketh away.

Overnight Wednesday it said additional stimulus won’t be pumped into the system unless the U.S. economy unexpectedly falters.

Cry babies
The cry babies on Wall Street reacted by throwing their toys out of the pram, at one stage sending the Dow down 133 points, before recovering to close down 65 points, or 0.49 per cent.

Here on the ASX, we finished Wednesday relatively flat.

S&P/ASX 200 winners included QBE Insurance Group (ASX: QBE), Platinum Australia (ASX: PLA), Fairfax Media (ASX: FXJ) and CSL Limited (ASX: CSL).

In the doghouse were Transfield Services (ASX: TSE) (read more here),  Boart Longyear (ASX: BLY) and Beach Petroleum (ASX: BOT). David Jones (ASX: DJS) went ex-dividend.

The end of the world has been delayed…again

Gold futures tumbled 1.9 percent to $US1,648 an ounce, a far cry from its peak of over $US1,900 an ounce.

You have to feel sorry for the doomsters. You know them…their glass is always half empty, they think GFC II is just around the corner, they’ve sold all their shares and stuck everything into gold.

Their time will come, again. Markets will wobble, again. Panic will come, again. And gold will rise, again.

For now, we’ll just bask in the glory of our advice of September 2011 when we said investors should dump their gold in favour of shares.

Since then, the Dow has soared around 17 per cent and gold has slumped around 13 per cent.

If you are looking for more ASX investing ideas, look no further than “The Motley Fool’s Top Stock for 2012.” In this free report, Investment Analyst Dean Morel names his top pick for 2012…and beyond. Click here now to find out the name of this small but growing telecommunications company. But hurry – the report is free for only a limited period of time.

More reading

The Motley Fool‘s  purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  Click here now  to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691).

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!