Trouble ahead? Gold hit $705 today, marking a new 25-year high. I can remember when gold hit $500, and the big response that created. It's $700 now…hard to believe.

In other news, the FOMC hiked the Fed. Funds rate to 5% today, adding another 25 basis points (0.25%), its 16th sequential increase since June 2004. Those with ARM's (adjustable rate mortgages) will be hard hit by another rate increase. More foreclosures on the horizon?

The good news, though, is that interest rates on savings and money market accounts should rise to reflect the rate change.

And, let's not forget the almighty dollar. The dollar fell today to a one year low against the euro, in response to the rate increase, and in expectation of increased pressure on China (to appreciate the yuan at a faster rate).