European Debt Crisis Affecting U.S. Stock Market

Stock resource site The Street recently reported more dismal results for stock performance, citing continued troubles in the European Union as a major factor. This news comes as the first fiscal quarter of 2012 ends with stocks finishing well below projected levels. 

The article also states that “disappointing news on job creation in March” is contributing to falling numbers in the Dow, Nasdaq, and S&P 500. “Fear has a large role in stock performance,” says Jeffrey Sica, president and chief investment officer of Sica Wealth Management. “Financials last quarter were disappointing and this quarter will be worse,” he said.

With stock volatility, many savvy investors are finding safe haven in gold, silver and other precious metals.

This news is troubling, though not unexpected. Since 2008, stocks have plummeted, the housing bubble has burst, the value of the U.S. dollar has fallen, and purchasing power has declined due to inflation. Stock and bond performance in recent years has been unpredictable at best and bankrupting at worst. Investors have lost thousands from their personal savings and retirement accounts, and many continue to turn to gold and silver to hedge against the unstable economy.

As the strength of stocks declines since 2008 the ratio to gold drastically falls.