Investors Turn To Gold As Stocks Tumble
The global market rout intensified yesterday as big stock indexes hit the lowest point in years, forcing investors to turn to gold for solace.
The Dow Jones dropped 1.6%—bringing it to its lowest point in two years. The S&P 500 fell 1.2% (lowest close since April last year). Meanwhile the Nasdaq dipped 0.4%, a 16-month low, the Wall Street Journal reports.
On the flip side, gold showed its Midas Touch, rising 4.5%. US government bonds showed promise too, dropping to 1.642% from 1.706% on Wednesday.
“Now is not the time for investors to do anything heroic, to try to anticipate the next leg down or anticipate a market recovery," says David Jilek, chief investment strategist at Gateway Investment Advisers, a firm with $12B under management.
Money managers and analysts say investors are wary of making big changes to their portfolios, suggesting the market hasn’t bottomed out yet. [WSJ]