* Dow jumps 421 points, biggest pct gain since Dec. 2011 * S&P 500 posts biggest daily pct gain since Jan. 2013 * Tech leads the gain; Oracle up after results * Indexes up: Dow 2.4 pct, S&P 2.4 pct, Nasdaq 2.2 pct (Updates close with further comments, VIX close) By Caroline Valetkevitch NEW YORK, Dec…

“If we are going to enter another period of massive
economic slowdown, one would have to expect risk assets and the
S&P to underperform gold as well,” said Adam Sarhan, CEO of
Sarhan Capital, a consultant to institutional investors.
The anticipation of dire economic events, such as the
Standard & Poor’s downgrade on U.S. Treasury debt last Friday,
default by a euro zone country or problems in the European
banking sector, prompted investors to favor gold at the expense
of riskier assets.
“Right now, with the dollar and euro in trouble — people
are talking about the euro failing. If you have a ‘black swan’
type event with a major currency, people are going to flock
toward gold,” said Sarhan, using a term for a low-probability
economic shock that catches markets unprepared.