The Stock for Today: SPDR Gold Trust Shares

Hello my Readers friends. The market fell again yesterday, although moderately. In spite of an attempt to start the day, the bulls could not take control of the market and the closing was very near to the minimum levels in July. Next week we will see if the market bounces or looking for new lows.


Meanwhile, gold continues to rise, rapidly approaching US$ 1,900 per ounce. In "normal" conditions we should be talking about a overbought price. However, the large amount of negative news and issues that can become difficult to resolve, may further drive the price of this metal.


Last week, a number of critical issues gained importance and were mentioned by various individuals and institutions. The global economic slowdown, rising unemployment, debt problems in Europe and US, rising inflation, etc, etc,etc. But really everything goes wrong in the world?. I have the impression that all is not as critical. Companies are innovating dramatically. The productivity of companies (especially in US) is improving significantly. Poverty en many developing countries is shrinking. The exchange between the countries is growing ... and besides, there is ample liquidity available that would allow revive the economy of any region in the world.


From my point of view, what is needed is a "confidence shock". Investors and consumers need someone to pull out the way, some dark clouds and that this allows to see a "little better".


Like it or not, this role must be played by politicians. Investors are accustomed to taking risks. Consumers are accustomed to buying even in difficult times. Then, what happens? Why the economy is not working?


Some time ago, I read an article where the author talked about the behavior of human beings. He said that we do not need to see the end of road, we need only see 90 feet ahead. It's like a car going at night from one city to another. It's not necessary the car lights shine from one village to another. What we need is 90 feet shine in front of us every moment of the trip.


I am convinced that we need political leaders marked the direction and shine those first 90 feet. Everything else would make consumers and business. But for that, we need real leaders. Otherwise, we continue to see gains next chart, while the families and business will see their situation getting worse every day.