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American Morning
Minding Your Business: Midas Touch
Aired December 02, 2003 - 07:53 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: December started in style on Wall Street. So, is the Dow poised to top 10000 once again?
Andy Serwer is off. Christine Romans is "Minding Your Business" this morning.
Good morning.
CHRISTINE ROMANS, CNN FINANCIAL NEWS: Good morning.
You know, a few times this fall we've seen the Dow at 9800 and 80, you know, within 100 points of hitting that 10000. And it happened again yesterday. Another couple of days of gains and you could see the Dow Jones Industrial Average challenging that 10000 mark -- 18-month highs for the Dow, 9899 is the level. Nasdaq -- this is the best in almost two years -- 1989, and the S&P 500 at 1070.
There was a manufacturing report that was very strong. We told you that people are continuing to think that this market, this year, the first up year in four. It might be time to jump on board before the end of the year.
So, you were seeing some really good gains yesterday. The market looks like it's poised to be about flat today. And gold prices, seven and a half year high yesterday.
O'BRIEN: Yes, why is that?
ROMANS: This is kind of curious, because sometimes you see gold do better when stocks are weak, but they're moving higher together. The dollar has been weak, and you can buy gold more cheaply if the dollar is weak, because gold is priced in dollars.
Anyway, a seven and a half year high for gold. For those gold bugs out there who were saying you should always have 3 percent to 5 percent of your portfolio in gold, well, they've done very well because stocks are up and gold is up.
O'BRIEN: A new survey is out that's really disturbing.
ROMANS: Well, you know, I don't know how surprising it is, but it is indeed disturbing. This is an NASD, a regulator's survey, found that about half of the people surveyed think that stock market losses are insured. They're not. Also, 70 percent were unaware of any risks associated with buying stocks on margin. You keep hearing people talk about record numbers of Americans invested in the stock market. This is so great, 95 million investors involved in mutual funds. But the NASD survey would indicate that people are investing in the stock market...
O'BRIEN: Don't have a clue.
ROMANS: They don't know what they're doing.
ANDERSON COOPER, CNN ANCHOR: You know, it's amazing about this study is that it's not just sort of everyone in general. It's people who are actually investing money in the stock market?
O'BRIEN: Who are in.
ROMANS: Absolutely. And, you know, a third of the people didn't even know the top 10, you know, gauges of financial knowledge, so that's a problem.
COOPER: It's amazing.
O'BRIEN: All right, Christine, thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired December 2, 2003 - 07:53 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: December started in style on Wall Street. So, is the Dow poised to top 10000 once again?
Andy Serwer is off. Christine Romans is "Minding Your Business" this morning.
Good morning.
CHRISTINE ROMANS, CNN FINANCIAL NEWS: Good morning.
You know, a few times this fall we've seen the Dow at 9800 and 80, you know, within 100 points of hitting that 10000. And it happened again yesterday. Another couple of days of gains and you could see the Dow Jones Industrial Average challenging that 10000 mark -- 18-month highs for the Dow, 9899 is the level. Nasdaq -- this is the best in almost two years -- 1989, and the S&P 500 at 1070.
There was a manufacturing report that was very strong. We told you that people are continuing to think that this market, this year, the first up year in four. It might be time to jump on board before the end of the year.
So, you were seeing some really good gains yesterday. The market looks like it's poised to be about flat today. And gold prices, seven and a half year high yesterday.
O'BRIEN: Yes, why is that?
ROMANS: This is kind of curious, because sometimes you see gold do better when stocks are weak, but they're moving higher together. The dollar has been weak, and you can buy gold more cheaply if the dollar is weak, because gold is priced in dollars.
Anyway, a seven and a half year high for gold. For those gold bugs out there who were saying you should always have 3 percent to 5 percent of your portfolio in gold, well, they've done very well because stocks are up and gold is up.
O'BRIEN: A new survey is out that's really disturbing.
ROMANS: Well, you know, I don't know how surprising it is, but it is indeed disturbing. This is an NASD, a regulator's survey, found that about half of the people surveyed think that stock market losses are insured. They're not. Also, 70 percent were unaware of any risks associated with buying stocks on margin. You keep hearing people talk about record numbers of Americans invested in the stock market. This is so great, 95 million investors involved in mutual funds. But the NASD survey would indicate that people are investing in the stock market...
O'BRIEN: Don't have a clue.
ROMANS: They don't know what they're doing.
ANDERSON COOPER, CNN ANCHOR: You know, it's amazing about this study is that it's not just sort of everyone in general. It's people who are actually investing money in the stock market?
O'BRIEN: Who are in.
ROMANS: Absolutely. And, you know, a third of the people didn't even know the top 10, you know, gauges of financial knowledge, so that's a problem.
COOPER: It's amazing.
O'BRIEN: All right, Christine, thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
