Stocks to Fall for Third Straight Day; Gold under Pressure
Stocks to Fall for Third Straight Day (Bloomberg)
U.S. stocks are on track to fall for a third straight session today, marking the first three-day skid of 2013 for the market. Partially to blame are fears of a reduction in Fed stimulus efforts and retailers’ low profit forecasts. “The market is trying to price in that at some point in time the Fed is going to take their foot off the gas pedal,” Arvin Soh, a portfolio manager with GAM USA Inc. in New York, said. “That’s because growth is picking up and is sustainable. That should ultimately be a good thing. The problem is everyone is long risk. When one thing gets triggered, that automatically causes selling and it feeds itself.”
Gold under Pressure (Reuters)
With the expected inflation thought to be coming after quantitative easing policies’ enactment in multiple economic zones failing to materialize, the value of gold appears vulnerable. “What has occurred in Japan and elsewhere has in effect made the opportunity cost of holding gold greater than it was,” Credit Suisse analyst Tom Kendall said.