I noticed an interesting correlation. A lot of people look to gold as a safe haven during an economic decline and are staying away from financial stocks from the huge losses they keep turning up each quarter due to the subprime mess. The question is, will this inverse pair correct back, and is the reversal starting right now? (ie. Sell gold, buy US financial stocks, & US dollar value increases)
Or is this just financial stock short covering, and a short term pullback in gold?
Bush unveils $3.1 trillion spending plan ( By MARTIN CRUTSINGER, AP Economics Writer)
"The president proposes more of the same failed policies he has embraced throughout his time in office — more deficit-financed war spending, more deficit-financed tax cuts tilted to benefit the wealthiest and more borrowing from foreign nations like China and Japan," said Senate Budget Committee Chairman Kent Conrad, D-N.D.
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