PALM CITYS HORSE TALK: NEWS FOR THE WEEK and WHITE OWL FARM IS PENDING

PENDING

WHITE OWL FARM

FT PIERCE, FLORIDA

Just brought my buyer to this 15.3 acre farm. White Owl Farm has a ten stall barn. My buyer is an equestrian trainer from the North East that is  bringing her talents to our South Florida Equestrian area.  Welcome. We will close very soon.  Call me. I can bring a buyer to your property too. 

PALM CITYS HORSE TALK

OUR OTHER NEWS...OUR ECONOMY

The Dow Jones Industrial Average (DJIA) lost 0.6% over the course of the week, closing Friday evening at 10150.65. On Tuesday, though, the DJIA had lost 1.3%, in large part because of the announced 27.2% decline in existing home sales for July. But after being hit by a decline of 12.4% for new-home sales announced Wednesday, the DJIA managed to regain most of the week’s losses rising 1.7% on Friday. Federal Reserve Board Chairman Bernanke promised the Fed would act forcefully in the face of “unexpected further developments,” yet there wasn’t any obvious economic indicator or event that might have precipitated Friday’s strong advance, so it may suggest the market is stronger than the first four days of the week suggested.


FOCUS ~ The three commodities covered by this summary each week (oil, gold and copper) have much to tell us about the current market, especially when contrasted to the movements of the DJIA.

Crude oil, which not long ago was selling for as much as $85 a barrel, remained in the low $70 range August 23 through 26, but on Friday (August 27) it broke back to $75.17. When the price was declining, the message was that investors were greatly concerned about an ailing world economy, which would lead to lower demand for oil and easing oil prices. On Friday, however, the rise of oil’s price suggested that the gloom that had led to lower prices earlier in the week had been exaggerated. Time will tell.

The price of copper, a metal with a myriad of uses in manufacturing and construction, reacts in ways that tend to parallel oil. Copper actually gained in price over the week, ending at $341. This seems another confirmation of the apparent market strength we saw on Friday.

The price of an ounce of gold is quite a different matter. Like Treasury securities, which generally gain in value when investors seek a safe harbor for their money, gold gains in price when safety becomes more important to investors than the size of the yield their money earns. At this point, gold is flirting with an all-time high. Concerns about the economy, therefore, remain high, although oil and copper suggest potential calm.

Oil, copper and gold prices may indicate that investors are losing confidence in the recovery. On Friday, however, investors showed greater confidence than most analysts had thought. It may prove instructive to follow oil, copper and gold closely in the near term.