The following is a guest post by mobile guru.
When we last year 2010, I think, overall, most people were quite pessimistic.
All good questions and honestly, I'm not sure that we know the answers to these questions today, although I think most people feel cautiously optimistic. What has made me really late of interest is the change in some of the basic economic principles I thought until it has been with Apple Pie and motherhood. In other words, you would remain always the same.
10 Year chart of the US Dollar
The first chart I confused by the am is the price of gold. I know investors who have bullish on gold for over 20 years. Of course, only in the last few years it has really grown. It was my deep-seated theory on gold only would go if inflation was running rampant. Yet gold is around $1400 and inflation is hard to figure out if it a problem or not, but it is certainly not widespread. Even if gold goes up, which would have $, in the opposite direction are directed thought. Granted the dollar is not a shining star, but it also is not on depression and seems at the moment a little separated with the price of gold.
5 Year chart of Gold
Another area that I am more than on little confused is mortgage rates. Mortgage rates have on for a while been kept very low level, spur to the housing market which start jump would help the economy. Now, I don't think that in any way than the banks never worked has made that seemed eager really money loans, unless they had a top notch credit score. Which, of course, if you had a great loan your need for a ultra low rate result was not probably be so vital.
Lower prices have spurred always the housing market, but this time it was little noticeable influence. Go what happens now start as prices back up this year? I don't know but it seems like a real problem in my head, because I think we need a housing market recovery that trickles into the economy in many different ways.
A final area that seems to have changed is the price of oil. Once again we are headed toward $100 oil and yet nobody seems to be concerned about the effects on the economy. Keep in mind oil has only once in history were more than $100 and that was when it went up to $150 and then to delete to almost $30. The end result is higher oil price directly translated to higher gas prices at the pump. I first read this statistic.
For every penny costs which increases price at the pump, a consumers additional $4 million. The price goes up a cent means it the $40 million consumers pay every day, 10-cent hike in the place is.
10 Year chart of oil
So, although the economy will join together, which seems top price for a barrel oil continue to move. In fact, many will be surprised to see oil $120 this year. I still have questions, why oil is up and will have tremendous negative impact on the economy isn't it?
So perhaps is perhaps its impact with the majority of us life by our first depression more reach than I would have thought. Perhaps, we must rethink everything, we thought we knew. When the restore economy, even if the above three elements appear in the wrong direction are directed to is obviously time the new paradigms can start to reconsider.
I am a long time experience investor to invest in high tech, biotech and precious metals. I blog about topics of interest to me and my goal is to generate intelligent discussion. I consider myself an expert in each area, but know a little about a lot of things. I think once we stop learning, we end life. You can connect with me on sea walking Alpha .
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