It is a tentative start to
markets this morning. A strong retail
sales report was enough to generate a moderate positive opening. One gets the feeling that the gain is not
going to hold. Last week’s poor market
performance has investors on edge.
Russian aggression in Ukraine is another source of uncertainty for
investors. Pro-Russian activists are
looking to carve other parts of that country into sections that would
presumably be annexed by Russia, just as Crimea was. Reactions by the US and Europe have been very
weak and seem to be an encouragement for further Russian aggression. Gold is up moderately while oil is steady. The US dollar is stronger. The safe haven status of the US dollar is
once again on display with what appears to be a mild flight to safety amidst
the uncertainty. Interest rates continue
to be very low, with no evidence of upward pressure.
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