Another Stock Market Selloff Could Drive More Bullion Buying
Investors got a look at first quarter GDP, and it wasn’t pretty. The U.S. economy contracted by 4.8%, even worse than the 3.3% decline anticipated by economists.
In addition to that bad news, 4 million more Americans filed for unemployment last week. More than 30 million people have lost jobs over the past 6 weeks, and the situation is only getting worse.
The S&P 500 lost 2.8% on Friday.
Perhaps equity investors are beginning to wonder if share prices, which have moved relentlessly higher in recent weeks, accurately reflect the dismal economic data.
Warren Buffett certainly is. The famed investor announced his company, Berkshire Hathaway, had sold all of its holdings in four U.S. Airlines and sounded a generally bearish tone in his annual letter to shareholders.