Return to Reality

Gold is down $20 an ounce this morning. The metal is finally below $600. Oil is down another 89 cents a barrel. Crude has fallen for six straight sessions, the longest losing streak in three years.
The odd thing is that bonds are lower this morning. The yield on the 30-year bond is up to 4.92%. Stocks are also down, but once again it’s a divided market. Cyclical stocks are feeling most of the pain. The Morgan Stanley Cyclical Index (^CYC) is down -0.76% while the Consumer Index (^CMR) is up 0.07%.
Recently I wrote about Nicholas Financial (NICK). This little micro-cap has had some outstanding results. The stock has pulled back to under $13 a share, or less than 12 times earnings.

Posted by on September 11th, 2006 at 9:45 am


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