With Gold Surging Above $1,300, Here Are Two Of The Biggest Surprises From Jim Grant’s Conference
With Gold Surging Above $1,300, Here Are Two Of The Biggest Surprises From Jim Grant’s Conference from King World News
With the price of gold surging above $1,300, here are two of the biggest surprises from Jim Grant’s conference.
By Bill Fleckenstein President Of Fleckenstein Capital
October 13 (King World News) – The stock market continued to inch higher while I was away, and today looked very similar to most of the days we’ve seen recently, with the indices basically wandering around unchanged in the early going and no real energy…
No Laughing Matter
In corporate news, yesterday Juniper Networks preannounced and indicated that there might actually be some trouble in the beloved cloud/data center arena. That was kind of laughed off, but today the stock was weaker again. In addition, AT&T preannounced because, “shockingly,” it seems there are problems in the smartphone business. (While AT&T blamed the hurricanes, there was some iPhone 8 weakness mixed in there.) If we were in any other period but the one in which we find ourselves, Apple and all of its suppliers would be declining and some of the cloud/data center companies might have weakened on this news.
Of course, combining smart phones with the ongoing weakness in PC sales means that a lot of chip companies are facing headwinds. The fact that these problems continue to be ignored (and we could extend this to other areas of technology, and elsewhere as well) just increases the opportunity for air pockets on the downside (more about that below).
Turning back to the action, in the afternoon, the indices actually slipped into the red! But only slightly, as you can see in the box scores. Away from stocks, green paper was mixed and flattish, oil lost 1%, fixed income was higher, and the metals gained a tiny amount after having a couple of good days recently.