The following is a wrap-up of the most significant developments of the past week and links to daily columns written by Money and Markets’ newsletter editors.
The beginning of the week was marked by rising stocks, following reports of a stronger economy in China.
On the same day, Larry Edelson drew attention to another trend — rising interest rates. In his column published Monday, he cautions about rising interest rates — and how to profit from them.
Apple’s presentation this week didn’t impress investors and caused the stock to plunge.
Facebook’s stock, in contrast, topped $45, as the company promises to deliver ever-better results.
Easing tensions in Syria hurt gold prices, which dropped throughout the week. Douglas Davenport looked at gold from a different perspective, explaining the downward movement from the point of view of technical analysis.
Despite the optimism inspired by reports from China, three editors predicted that stocks would inevitably fall soon, giving three different explanations:
- Bill Hall added another three reasons why, in his mind, stocks have topped out for 2013.
- Douglas Davenport showed his readers a correlation between the put/call ratio and the stock market.
- Mike Burnick used market data that stretch to 1928 to explain why stocks are bound to fall.
- J.R. Crooks took a different view of China: the country’s debt dilemma might cast a shadow on its growth prospects.
The retail sales report released Friday showed lower-than-forecast growth — only 0.2 percent against an expected 0.5 percent.
At the end of the week, Mike Larson encouraged readers to look to the bond market to see why interest rates are bound to jump, and J.R. Crooks cited three possible scenarios for gold — look at their charts to see what might happen next.
A major Federal Reserve meeting takes place next week that will be a game-changer for the economy as well as the stock, bond, currency and commodity markets. Follow Money and Markets for insights on how to invest.
The Money and Markets Team