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James Frischling Precy Dumlao, Opalesque Asia:
Fear is a powerful word gripping the global markets, says James Frischling, President and Co-Founder at New York-based financial advisory firm NewOak Capital. So powerful is the word that it overshadows the fact that despite fears of another round of U.S. recession, the economy remains strong and corporate earnings are still positive.
"Despite increasing concerns of the U.S. entering another recession, the economy continues to grow, corporate earnings are strong and while it's not at a rate anyone wishes to see, jobs are being added. Such signs suggest that things aren't as bad as people think, but fear has a way of becoming a self-fulfilling prophecy. Continued pressure on stocks won't encourage employers to add new jobs, consumers to spend or provide renewed interest in the housing market, which collectively only puts more pressure on the stock market and our fragile economy," Frischling said in an industry commentary obtained by Opalesque yesterday (August 23rd, 2011).
Investors and hedge funds looking for safe haven are driving gold prices to historic highs: this is what drove gold prices above $1,800 per troy ounces, "while the demand for the 10-year U.S. Treasury note was so strong last week, the yield fell below 2% for the first time in 50 years," he complained.
Frischling was referring to the gold price movement last week whic...................... To view our full article Click here
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