ANALYST: All My Clients Are Wondering If What Happened To Gold Happens To Stocks Next

Kit JuckesKit Juckes

The last few days have seen a total liquidation in the gold market.

Yesterday, the metal was down more than 10 per cent, marking its worst one-day drop in 30 years.

It’s stabilised a bit this morning, but is still trading below $1400, around $200 less than it was worth just a week ago.

Stocks had a nasty day yesterday as well, as weakness from the commodity markets seeped into the equity markets.

Société Générale FX strategist Kit Juckes says this morning that a lot of his clients are asking whether what just happened to gold will happen to stocks next.

“I rather sense that today we’re all waiting for some new news while nervously wondering if there is more liquidation to come,” wrote Juckes in an email. “The majority of the mails I get wonder less about gold and commodities (the damage is done), and more about whether we will see a repeat in equities.”

For his part, Juckes doesn’t think so – but the thought is definitely floating around out there, nonetheless.

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