Off To The Races

It's been a good year so far, even though only two trading days have gone by in 2026. The S&P 500, DJIA, and Nasdaq all rose today despite the crisis in Venezuela over the weekend. The DJIA hit a record high. We've often observed that geopolitical crises create buying opportunities. This time, stock market investors chose to emphasize the positive effects of this crisis rather than its possible unintended negative consequences. Apparently, they aren't at all concerned about how the Chinese and Russians will respond to President Donald Trump's declaration that the Monroe Doctrine is back in force in the Western Hemisphere. What if China declares a Xi Doctrine and Russia reiterates the Putin Doctrine?

Gold investors accentuated these possible negative consequences, sending the price of gold up to a one-week high (chart).