U.S. Equities Continue a Historic Climb

U.S. equities continue their historic climb, an event which began last year and accelerated exponentially following the presidential election in November. The Dow Jones Industrial Average gained 1.12% on the day, rising 232.23 points and closing at 20996.12. The S&P 500 rose 0.66% today, a gain of over 15 points to close at 2389.68. However, it was the NASDAQ Composite Index which saw the greatest amount of growth.

Forty-Six Years in The Making

The NASDAQ exchange was founded in 1971 and was one of the first exchanges to offer electronic trading. Now, after 46 years, it has reached a historic milestone with the NASDAQ Composite trading at over 6000 for the first time.

Today’s dynamic upside surge in U.S. equities prices continue to underline a risk-on environment, which places massive pressure on safe haven assets, such as the precious metals. Gold futures closed at 1265 today, losing another full percentage point, equaling $12.50 in value. Silver futures gave up almost $0.27 to close at $17.59, a loss of 1.5% on the day.

In light of the recent declines in both gold and silver pricing, I believe we might be presented with an opportunity to buy the dip. With the current April deadline to avoid a government shutdown, as well as the potential for the North Korean conflict to accelerate, gold and silver pricing could effectively fight price support and begin to move back into rally mode.

I Will Gladly Pay You Tuesday For a Hamburger Today

J. Wellington Wimpy, a character created by E. C. Segar in the 1934 comic strip Popeye, might’ve put it best when describing the current House and Senate negotiations to reach an agreement on a spending proposal to thwart a government shutdown on April 28.

“I’ll gladly pay you Tuesday for a hamburger today.”

In an 11^th hour negotiation, members of the House and Senate appropriations committee are working feverishly to complete negotiations on a budget agreement before the current stop-gap funding for federal agencies expires.

Once again, we see our elected officials devoid of long-term financial responsibility as they kick the can down the road and expand on our current massive deficit.

Although simplistic, it is not much different from the philosophy of J. Wellington Wimpy, with just as much disregard for prudent financial responsibility.

Although current events have put major pressure on both gold and silver pricing, don’t count them out just yet. It always looks darkest just before the dawn.

Wishing you as always, good trading,