Optimism about the upcoming vote on the $700 billion bailout has been giving way to stock and exchange traded fund (ETF) fluctuations for much of the day today.
The package is in the Senate, and would include tax breaks for businesses and alternative energy, along with higher government insurance for bank deposits, say Carl Hulse and Robert Pear for the New York Times. The addition of tax breaks was meant to appeal to the lawmakers who voted down the plan on Monday, while appeasing Democrats, as well.
Leaders for both parties are optimistic, not only that the bill will pass, but that it could be embraced by constituents, reports Andrew Taylor for the Associated Press.
Ahead of the vote and worries about the fate of the bailout plan, investors still seem to be turning to safe havens, including gold. News about manufacturing also weighed on investors’ minds. In September, gold rallied 5.5%, but lost 6.1% in the third quarter, reports Moming Zhou for MarketWatch. Shares in SPDR Gold Shares (GLD) jumped $4 billion last month, and it’s now the third-largest U.S.-listed ETF.
- iShares COMEX Gold Trust (IAU), up 3.7% year-to-date
- PowerShares DB Gold (DGL), up 1.9% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.