Another story that caught my fancy, restated in terms of gold for your entertainment. Enjoy!
From a March 11, 2008 story in the Financial Times:
As stated in dollars:
Wall St enjoys best one-day rise since 2002
By Chris Bryant in New York
Published: March 11 2008 13:01 | Last updated: March 11 2008 20:41
US stocks enjoyed their best one-day advance in more than five years on Tuesday after the Federal Reserve announced a $200bn plan to boost liquidity at troubled financial firms.
Banking stocks surged with financial firms chalking up gains of more than 10 per cent, as traders rushed to cover short positions. The central bank plan helped allay fears that liquidity pressures were spiraling out of control.
Energy companies and other commodity producers were among the best performers as crude oil surged to another record.
The S&P 500 closed up 3.7 per cent at 1,320.63 points, its best performance since October 2002. The Nasdaq Composite soared 4 per cent to 2,255.76 and the Dow Jones Industrial Average climbed 3.6 per cent to 12,156.81 points.
The co-ordinated central bank announcement was a welcome salve for equity investors alarmed at the pattern of recent selling.
Until Tuesday the market had retreated for three successive sessions as investors were unnerved by reports of margin calls at hedge funds and soaring home foreclosures.
Tobias Levkovitch, chief US equity strategist at Citi Investment Research, had warned that “hopelessness†was setting in.
Restated in gold:
Wall St enjoys best one-day rise of the last three weeks
By Chris Bryant in New York and Charles Vollum in Honolulu
Published: March 11 2008 13:01 | Last updated: March 11 2008 20:41
US stocks enjoyed their best one-day advance in more than 3 weeks on Tuesday after the Federal Reserve announced a plan to bail out troubled financial firms that will cost 6,413 tonnes of gold – an amount equal to 79% of the current US gold reserves.
The value of the US Dollar (32.07 mg of gold, down 0.02 mg) was almost unchanged by the announcement, but banking stocks surged with financial firms chalking up gains of more than 10 per cent, as traders rushed to cover short positions. The central bank plan helped allay fears that liquidity pressures were spiraling out of control, but astute observers know that the additional liquidity will soon show up in further declines in the value of the already beleaguered Dollar.
Energy companies and other commodity producers were among the best performers as crude oil moved up slightly to 3.487 grams per barrel. Crude prices are still about 5% lower than at the start of 2008, and more than 30% lower than their high of 5.049 grams on August 30, 2005.
The S&P 500 closed up 3.6 per cent at 42.347 gold grams, its best performance since February 13th. The Nasdaq Composite soared 3.9 per cent to 72.332 and the Dow Jones Industrial Average climbed 3.5 per cent to 389.813 gold grams.
The co-ordinated central bank announcement was a welcome salve for equity investors alarmed at the pattern of recent selling, but experts warn that this relief will come at a high price as it depresses the value of the currency.
Until Tuesday the market had retreated for three successive sessions as investors were unnerved by reports of margin calls at hedge funds and soaring home foreclosures.
Tobias Levkovitch, chief US equity strategist at Citi Investment Research, had warned that “hopelessness†was setting in. He may yet be proven right, as even after today's bounce, the markets stand more than 20% below their values starting the year and more than 72% below their all time highs of August 1999.
