Wall Street Sector Selector—Dividend Digest, October 15, 2014
Monday brought another stock market selloff, as everything sank, except gold. While the spot price of gold jumped 1.11 percent, the SPDR Gold Trust ETF could not even make it to 0.80% (GLD).
Even the dollar was down (UUP). Reality continued to set in as the Federal Reserve’s bond-buying extravaganza continued to wind down. The New York Fed will be conducting the last seven POMO auctions between Tuesday and October 28, when the most important phase of the quantitative easing program will end.
Soothing reassurances from Fed Vice-Chair Stanley Fischer, to the effect that the central bank was in no hurry to begin raising the federal funds rate, did nothing to keep the Chicago Board Options Exchange Volatility Index (VIX) below 20 on Monday. The VIX ended the day at 24.64. Red Flag: Expect lower prices ahead.
John Nyaradi, Wall Street Sector Selector, www.wallstreetsectorselector.com, editor@wallstreetsectorselector.com, October 13, 2014
