Not a good day for U.S. markets, but pretty good for gold and Swiss francs. The SWI, Swiss Watch Index jumped up to $64.03, the cost in USD that a CHF 50 watch cost a year ago.
The Swiss are pretty unhappy that the Swiss Central Bank is not going to intervene in the market to reduce the value of its currency. While a rising value is bad for exporters and tourism, almost everybody else in the country wins. The Swiss import much of their household products, cars, and other stuff, so they are fine. And as savers, they are winning even though their bank interest rates are pretty low.
Meanwhile, gold has recovered from its little swoon of a few weeks ago and closed at $1885 today, up $58.80. Looks like we’re headed back up to $1900, eh?
Here’s the new MPI – Model Portfolio Index. Note that we “sold” Exxon @ $73.64/share and “bought” an equivalent amount of Coca Cola @ $70.54/share, another large, ‘safe,’ dividend payer. Exxon closed today at $72.14, down $1.35, or 1.84% for the day.
Have a nice weekend and Labor Day!