The WeekendInvesting Newsletter

Freshly Brewed - Market Perspectives from WeekendInvesting Research Desk

Dollar index is pointing to a new high in Gold

Whenever the dollar index experiences significant drops, gold tends to reach a bottom and subsequently experiences a surge in price. Examples of such instances include 2008, 2015, and 2020. Currently, we are witnessing sharp drops in the dollar index, which might indicate another opportunity for gold prices to rise.

Gold is known for its relatively slow-moving nature. However, when it does make a move, it does so in a robust and impactful way. The steady increase in gold prices over the years demonstrates its ability to enter new price paradigms. From trading at $200 to $800, then reaching $1,900, and later consolidating between $1,200 and $2,000, gold has consistently shown . . . .

An update on the US portfolio long term performance

As of the last recorded data, the Nasdaq index has experienced a significant rally, surging by 41% since the beginning of 2023. On the other hand, the S&P 100 index has only seen a 24.9% increase during the same period. This discrepancy can be attributed to the remarkable performance of tech stocks in the Nasdaq index.

Interestingly, the broader market seems to be lagging behind. The Russell 2000, which represents mid and small-cap stocks in the US market, has only risen by 2.7%. This suggests that the market’s upward movement is primarily driven by a few top-performing stocks, while the majority of stocks are not experiencing the same level of growth.

To gain a better understanding of the market dynamics, it is important to analyse the top . . . . .

WeekendInvesting Daily Byte

The market started the day flat, with a slight dip in the first few minutes. However, it quickly rebounded and surpassed yesterday's high, continuing to climb until it reached the resistance level of the top of October. In the last hour of trading, there was a sharp drop of almost 100 points, making it a challenging day for intraday traders - a sharp up and a sharp down. It seems that the larger players may have planned the expiry move, catching some smaller players off-guard.

Regardless of the intraday volatility, longer-term investors like us always welcome any upward movement that comes with volatility. It helps shake out weaker hands and creates opportunities for those with a long-term perspective.

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