This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'RealMoney' Radio Recap: The Mercurial Market

"This market has a habit of changing its mind very quickly," Aaron Task, the co-executive editor of TheStreet.com, told "RealMoney" radio show listeners Wednesday. Task is filling in for Jim Cramer this week.

Task believes that these mercurial turns are based on how market participants view the Federal Reserve's next move.

The market is ratcheting down odds that there will be many more rate hikes beyond the next Federal Open Market Committee meeting, Task said.

Fed funds futures now place 70% odds that the overnight lending rate will hit 5% by May 10, down from 80% earlier in the week.

Task said that even though people don't often like to focus on the Fed, ultimately the central bank's control over the value of the dollar is the most important factor on Wall Street.

James Turk, founder of GoldMoney and the author of the book The Coming Collapse of the Dollar, joined Task to talk about the metals markets and the role that the Fed plays in those prices.

With the Federal Reserve raising rates and liquidity tightening, Task asked if that would be negative for gold.

Turk pointed out that it's not the level of interest rates per se, but the level of real interest rates that is important for gold. Adjusted for inflation by subtracting the CPI from the fed funds rate, the real rate has stayed close to zero.

"Despite the fact that rates have been coming up, the CPI has risen as well," Turk said. "The Fed has been behind the curve on inflation ... and that will help gold."

Task pointed out that gold prices have come down, and he wanted to know if we were at the end of gold's bull run.

Turk said that the shake-up cleaned out the speculators, adding that once the price fell to $540, good physical demand returned to the market.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
VPHM $49.96 -0.02%
C $58.46 0.00%
GOOG $625.61 0.00%
PTIE $1.89 0.00%
AAPL $121.30 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs