Now it is gold that has become “volatile,” which often, but not always means its price is declining. This week the “barbarous relic” closed at $1725, down $32.50 for the day.
Meanwhile, our Swiss watch, originally $50 and SFr50, now would be worth $54.54! That’s better than the $58 it was in May 2011, but it still means that right now the US Dollar is falling almost faster (2.4%) than the Dow is going up (3.6%) since beginning of year.
Well, the SFr is having its own problems, not the least of which is the fact that the president of its Swiss National Bank had to resign when his wife apparently made some suspicious currency trades, even as said president was trying to get the price of the SFr down, so the country’s exporters could actually sell products abroad.
As we said, deflation is king these days, despite what you see in gasoline prices and at the grocery store. Did you notice that homes prices are still falling? Dividends are going up. We keep track of these things and haven’t seen a decrease or cut in any dividends on the US stock markets, according to info gathered by the WSJ. These are the macro numbers.
Gas and food are micro numbers in the greater scheme of things. We consumers don’t count. And BTW, it is NOT your patriotic duty to buy stuff. Continue to cut your debt.
Deflation means that debt will loom larger in your financial picture as your wages go down or disappear and your home value goes down.
Anyway, enough palaver, here’s the Model Portfolio Index for this week (better than the Dow or the Nasdaq, so far!!):