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The following is a guest post by Mobile Guru.
As we entered 2010 last year, I think overall most people were fairly pessimistic.
- Were we coming out of a depression/recession?
- Were we entering a double dip recession?
- Was there actually light at the end of the tunnel?
All good questions and honestly I am not sure we know the answers to those questions even today, although I think most people are feeling cautiously optimistic. What has really struck me of interest of late is the change in some of the basic economic principals that I have thought were right up there with apple pie and motherhood. In other words they would always stay the same.
10 Year Chart of the US Dollar
The first chart that I’m confused by is the price of gold. I know investors who have been bullish on gold for over 20 years. Obviously only in the last few years has it really gone up. My ingrained theory on gold was it would only go up if inflation was running rampant. Yet gold is around $1400 and inflation is hard to figure out if it is a problem or not, but it for sure is not running rampant. Also if gold goes up, I thought the dollar would have to be headed in the exact opposite direction. Granted the dollar is no shining star, but it also is not at lows and seems a little disconnected with the price of gold at the moment. … [visit site to read more]
