By Brad Thomas
Quote for Today:
“Great investing requires a lot of delayed gratification.”
– Charlie Munger
Oil and gold.
If the one is going up, it’s a sign the economy is gaining ground. If the other is up, investors are nervous about the direction it’s headed.
Or so the thinking goes.
This morning, as I checked the markets at 6:15, crude oil was up 2.37% to $54.82 – a very big deal considering how it hasn’t been over $54 since January of last year. Whereas gold was down $12.90 to $1,851 on the button. The markets were up too after ending in the green yesterday as well. So there’s clearly confidence again.
Stephen Innes of Australian financial services company Axi said that “The sound of more stimulus, which tends to raise all boats, was music to the market’s ears.” By that, he meant that Biden and 10 moderate Republicans met on Monday to discuss more government intervention.
Biden had proposed $1.9 trillion. Republicans countered with $600 billion, but both parties left the meeting calling it a “positive” experience.
Meanwhile, Reddit users are apparently feeling positive about heavily shorted biotech shares. Their newest slogan is #BioWar, which I suppose was inevitable considering what they’re trying to do.