Quick Take: Gold Tumbles as Jobs Pop
NEW YORK ( TheStreet) -- Gold continues to fall after a better-than-expected nonfarm payrolls report. What's next?
James Altucher, managing director of Formula Capital, told TheStreet's Joe Deaux Friday the jobs report sent two signals -- one positive and one negative. The positive is obvious, with solid jobs growth. The negative is simply the increased likelihood of tapering from the Federal Reserve and its stimulus program.
Clearly, traders chose the positive sign, although rising yields in Treasury bonds are quickly paring back those gains. Either way, Altucher, says gold is not the best way for investors to play along, no matter what the Fed or European Central Bank does going forward.
Why invest in a "hunk of rock" when you can invest in a growing, global company with huge profits? he asked. Thursday's ECB announcement sounded just like Fed Chairman Ben Bernanke's did one year ago, Altucher added, with the ECB working right out of the Fed playbook.Investors may want to think about investing in European equities at some point, Altucher suggested. Altucher pointed to strong countries such as Germany and England as solid, go-to choices, suggesting that stocks there would be due for a rally much like the U.S. has had this year. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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