Is Gold’s Correction Over Yet?
October 4, 2006 -
I’ve stated numerous times on my blog, even when gold was rising higher above $620 and $630 an ounce that I believed it would retrace to $570 or below. Despite this, I also stated that long term, gold is a solid investment and that one can’t be shaken out by gold’s historic volatility (which I also added would be compounded by the fact that gold ETFs make it much easier for hedge funds to enter and exit gold markets in search of the quick hits they always seek). I still believe that gold will go lower before starting a historic leg up. Stay tuned and I’ll tell you when I think gold has reached the bottom of this current correction.
Add comment October 4th, 2006
It’s funny because someone wrote to me the other day, “Is your blog an investment blog or political blog?” I just simply replied that he should read the rest of my blog posts to understand that if you don’t understand politics that you will never be a top-tier investor. I’ll explain why in this blog entry. 
Here is the graph for the Consumer Confidence Index in the U.S. (Source: Conference Board). Basically the CCI takes a representative sample of 5,000 households in the United States (which by the way, is an enormously tiny sample for a population of 300 million) and asks them how they feel about the state of the economy, with a particular emphasis on the job market and business conditions. Furthermore, the index is weighted more heavily (60%) regarding future expectations than current conditions (40%). I’m actually going to keep my blog today quite short because I think that the CCI is basically worthless, 
Soon, Japan will see a changing of the guard. Last week,on September 30th, popular Japanese Prime Minister Junichiro Koizumi stepped down after 5 ½ years and will be replaced with 51-year-old Chief Cabinet Secretary Shinzo Abe. Though there are many positives about the Japanese economy now, their large, looming national debt is still very worrisome. Furthermore, with a largely untested politician in Shinzo Abe, a little caution is merited to see how Abe’s economic policies materialize and how the country reacts to Abe as its new leader.
