Today we have an update from Marc Faber.
Cyclical stocks are doing miserably: commodities, gold, silver. While equities have been going up, that's where people are putting their money now.
When oil prices would spike, the economy could dive. But Marc Faber says that Ben Bernanke would flood the money with even more money. So it's unlikely that markets will go down. He sees oil prices as a tax on the consumer.
So we get a weakening economy, but with rising equity prices.
For gold, Marc expects a further correction to the 1500 $US/ounce level.
The reason why gold mines went down is because governments want a share of these mines. Exploration companies have zero cash flow and many gold mines have gold only as a by product, while the other part of their revenue, namely industrial metals like copper, are weak.