Monday, stocks in Asia moved little, but they fell in Europe 0.9% and in the U.S. 0.6% on very low volume as the VXO rose 11% to close at 9.45 and miners fell nearly 2%. Tuesday, stocks fell slightly in Asia, but went down hard in Europe — dropping 1.3%. In the U.S. where Tuesday has been consistently positive, stocks fell 0.7% on low volume. The VXO rose another 11% to 10.53 while precious metals miners gained over 1%.
Wednesday, stocks in Asia continued the trend set in the West the day before, falling 0.7%. In Europe, they closed unchanged, but in the U.S. they rose 0.4% on very low volume. The VXO fell 6% to drop below the 10 level again, while precious metals gained 1% and their miners about twice that. The news of the day relating to the politboro was the release of their FOMC meeting notes. Here’s a story that reminds us that all is not well in Mudville .
Thursday, in Asia stocks fell slightly. Things started coming apart a bit as fear crept in relating to the bond default in Portugal. In Europe, stocks fell 1.3% as well as in the U.S. 0.6% on very low volume. The VXO shot up 11% to close at 10.98. Friday, stocks around the world ended little changed on abysmal volume. Despite that lack of interest, precious metals gained about 1% while their miners rose more than twice that amount yet the VXO fear index fell back about 5% to close at 10.44.
Oh no! Stocks actually fell 1% for the week. What the lemmings fail to understand is that just because the last buyer of one share of stock paid a certain price for it, does not mean that that is fair value for all shares outstanding. This was made very clear through the example of hapless investors in CYNK. A Bible quote comes to mind:
For when they shall say, Peace and safety; then sudden destruction cometh upon them, as travail upon a woman with child; and they shall not escape. (I Thessalonians 5:3)