Re: Gold hits 2-month high, inflation concerns resurface
in response to
by
posted on
Aug 07, 2009 04:31PM
Didn't the share price of SMH at the beginning of the week rise by about 4 cents, and then right near the end of the trading session, lose the 4 cents? Coincidence? I don't know who bought and sold, but seems like games were being played.
You also have to realize that the technical definition of a recession is 2 quarters of decline in the GDP. In the worst case, this could mean almost 9 months of decline before anyone has to admit there is a recession (the 2 quarters plus the previous quarter less a day). The fact that last October, everyone was still debating whether we were in a recession or not, and now its acknowledged the US was in a recession since about Oct/07, shows what a joke we have for political leaders and media. Additionally, as soon as there is some uptick in GDP, everyone rushes to declare the recession over. No waiting for 2 consecutive quarters here!
Welcome to the world of investing. Little guys like us ALWAYS trade on stale and outdated data.....actually trade isn't the right word, gambling is.
I don't know whether to cheer for inflation (gold goes up ---> SMG goes up) or hope there isn't any (we don't lose some of our purchasing power).
Can't wait until Novemeber when SMH is supposed to start earning income. That should be exciting!
Trainboy
David Rosenberg