It was back to work on Tuesday for US speculators, and the mood was gloomy as president-elect Donald Trump quipped that the "dollar is too strong," which sent world markets into a wild frenzy.
Asian and European markets had already been upset on Monday, while the US rested for the Martin Luther King Jr. holiday, but on Trump's vocalizing of displeasure, US markets took it to heart.
The Dow Jones Industrial Average backed away from the formerly-attainable 20,000 mark, down 110 points on Monday before a late rally slashed the losses in half.
It is apparent that the euphoria over Trump has faded significantly and American investors are heading for safer shores, mostly in bonds and cash, though precious metals may have even more appeal with gold and silver both making new highs for the year on significant gains. Spot silver stood at 17.175 and gold at 1216.70 at the close of trading in New York, but the rally may be just beginning to heat up.
Hugo Salinas Price makes important notice of the abrupt decline in international reserves. Of all the reports on matters economic, his may be the most acute and insightful. It's a must read and should be given careful consideration due to Mr. Price's status among economic thinkers.
At the Close 1.17.16:
Dow: 19,826.77, -58.96 (-0.30%)
NASDAQ: 5,538.73, -35.39 (-0.63%)
S&P 500: 2,267.89, -6.75 (-0.30%)
NYSE Composite: 11,190.76, -36.41 (-0.32%)