Nothing has really changed after the highly anticipated G-20 meeting in South Korea over the weekend. It seems that the U.S. Dollar Index just took over from where it left off by continuing to decline this morning. Currently the U.S. Dollar Index is trading lower by 0.49 cents to $76.87. The U.S. Dollar also made a new all time low versus the Japanese Yen. Therefore, the inflationary stock rally that really picked up steam in late August continues to inflate higher this morning. How long can this continue you may ask? Only time will tell.
Spot gold is catching a major move higher gaining $20.00 to $1345.00 an ounce. The popular SPDR Gold Shares(NYSE:GLD) are trading higher by $1.44 to $131.17. Silver is also catching a very sharp bid higher along with gold. The iShares Silver Trust is trading higher by 0.49 cents to $23.25. Copper, cotton, and most other commodities are all trading sharply higher this morning. Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) which is often viewed as a copper barometer is trading sharply higher by $3.65 to $97.69 a share.
As long as the U.S. Dollar Index continues to slide and decline everything in the stock market will move higher in price and continue to inflate. This morning the Federal Reserve Bank Chairman Ben Bernanke gave a speech at the FDIC and stated that they are looking into the foreclosure crisis. The central bank of the united States has openly stated that they been buying many mortgage backed securities in order to keep rates artificially very low. Investors can only wonder what kind of problem will emerge down the road from all of this. At this time the stock market continues to climb, however, the purchasing power of anyone that owns U.S. Dollars is watching the value erode almost daily. That is the trade off right now if you want a higher stock market.
