It’s a new month, but the same
pattern as stocks take another turn for the worse. The Dow is down triple digits after some
negative economic data. The January ISM,
an important measure of manufacturing activity fell from 56 to 51. A reading above 50 indicates expansion, but
the data was well below market expectations.
Housing construction also was weak.
Gold is surging with investors looking for investment alternatives to a
stock market that continues to be caught up in a wave of negative
momentum. Interest rates are falling,
which is a surprise to most analysts, since the tapering of government bond
purchases was expected to drive rates up.
Apparently, there is such a push to the safe haven of the US dollar that
it is resulting in lower yields. We
appear to be in the long awaited correction that has been anticipated for a
some time.
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