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Dell led tech sector stocks lower with its rather disappointing earnings report. Dell earnings were down 54% and that sent shockwaves through the tech sector. CNET reports on the issues that are related to Dell’s earnings:

“We saw some weakness in orders in some of the weeks preceding Windows 7… our inventories were in place and people were waiting to see how the launch went,” he said on a conference call with reporters Thursday. “After the (October 22) launch we saw a surge in orders. We believe that affected our October revenue a bit, but we’ll ship that through in the fourth quarter.”

Gladden did try to point out more positive signs for the company during the quarter, noting, “We significantly improved over the 23 percent (quarterly revenue) decline from earlier this year.”

The tech sector, as a result, is bringing down the entire stock market. The Nasdaq, as might be expected, is being pounded the most. The Dow and the S&P 500 are both lower as well, led by the tech sector.

Another issue afflicting the stock market is the fact that investors are concerned about the speed of economic recovery. For some, it isn’t happening as fast as hoped. And part of the reason for the pullback is due to the fact that investors are starting to think that maybe they were a bit precipitate in sending the stock market so much higher recently. For now, investors are turning to safer investments, like bonds and the U.S. dollar — both of which are backed by the world’s most stable taxpayer base.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Many people have been watching the markets with trepidation. And, of course, looking at some of the deals that went down earlier this year. Some of them were real losers. CNN Money offers 3 deals this year that really should have been done differently:

1. Cash for Clunkers: While many people got a new car, the program created unintended consequences, such as benefiting foreign automakers, creating a huge cleanup for junked clunkers and running up prices. On top of that, Cash for Clunkers diverted discretionary income from other spending and directed it toward more consumer debt. Not to mention the fact that it didn’t actually boost consumer confidence in a meaningful way.
2. Citi undersold Phibro: Instead of driving a hard bargain on its sale of Phibro, Citi basically got the shaft as it only went for book value just to unload. And, of course, with the U.S. government owning 34% of Citi, that means that the taxpayers got a bum deal as well.
3. How to sell TARP warrants: CNN Money analyzes the way TARP warrants worked — and how they cut us out of some potentially valuable earnings: “The smartest part of the Troubled Asset Relief Program, as far as taxpayers are concerned, was the Treasury’s getting stock purchase warrants from the institutions that borrowed TARP money. The dumbest: Forcing the government to immediately sell back the warrants to institutions that repaid TARP loans and were willing to go through a complex pricing procedure.

   Consequently the strongest borrowers, with the most attractive stocks, repaid the loans early and got their warrants back just as their stocks were rising. In the real world, the idea is to cut your losses short and let your profits ride. At TARP our gains were cut short.”

But it’s not all horrible. GM plans to return its bailout money, and that means the bailout isn’t as expensive as we thought:

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Gold can’t be stopped — for now. The precious metal just surged to another high of $1,133 before falling back to $1,132. Gold bugs are celebrating as investors buy gold on the assumption that economic recovery is underway, and might bring with it inflation. Equities are markedly higher as well, banking on economic recovery optimism. Stock markets in Asia and Europe were higher today, and the U.S. market opened with a rallying cry. The bulls are charging, and that is helping commodities like gold.

And, of course, the fact that an economic recovery can’t negate difficult underlying fundamentals (like massive amounts of U.S. government debt) have investors quite nervous about the U.S. dollar, which is tanking spectacularly today against every major currency. Including the yen.

Oil is also up today, since it often moves in tandem with gold (and opposite the U.S. dollar). There are hopes that economic recovery will increase demand for commodities, and that is sending the speculators hurrying to buy.

Investing in precious metals

Investing in precious metals has become much easier in recent years. Index funds, ETFs and other instruments make it possible for nearly anyone to diversify his or her portfolio with precious metals, like gold and silver.

But is it really a good idea to go for gold right now? There are some that believe that all this gold craziness is a bubble, and that it can’t go much higher. Even if it does, the argument goes, gold will have to crash sometime. And when it does, it is most often the consumers who got in at the end who suffer. The biggest gainers are those who invested more than five months ago. Indeed, if you are looking to get rich fast, you better get in, clock some gains, and get out. Fast. And even that is a risky move. Who knows how long this frenzy will last?

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.