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STOCKS CLIMB, GOLD SHINES, AND THE FED GETS BREATHING ROOM

[Chart courtesy of MarketWatch.com]
- Moving the market
This morning, the market pulled off one of its favorite tricks: bad economic news turned into good market news.
July’s jobs report was much weaker than expected, with payrolls actually shrinking and prior months revised sharply lower.
While that’s not exactly a cause for celebration on Main Street, Wall Street saw it as a sign the Fed can stay on the sidelines rather than reach for another rate hike.
That shift in expectations sent bond yields lower and helped push stocks higher, with software shares leading the charge.
Precious metals stole the show for the week, though. Gold posted its strongest weekly gain in seven months, silver sprinted ahead with a 10% jump, and even Bitcoin joined the risk-on mood by climbing back above $65,000.
The big debate now is what comes next: does sticky inflation keep yields elevated, or does a cooling economy ultimately pull them lower?
That’s the tug-of-war bond investors are wrestling with today. So, if you had to pick a side right now, would you bet on inflation or slowing growth?
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