Watching the market take on water like a leaky Liberian freighter, I’m wondering about the wisdom leaving my assets in the 401(k) plan.  It’s a fact that the market goes up and the market goes down. The question is, what kind of games do the fund managers play as share prices fall? Do they sell-off many low priced shares for fewer shares of stronger stocks? If so, how does that affect your recovery as the market strengthens? I don’t know. Sounds like its time to understand this better.

Gold has been steadily increasing in value since at least June of 03 (near the limit of my horizon). Since stock prices started to nose downward in early 4Q2007, the slope of gold price growth increased. The inverse price trend with investor confidence in stocks is normal behaviour for gold.

But looking at the upward trend in gold prices this decade, I’m left to wonder if there isn’t some fundamental change happening. If the price is rising due to global demand, who is out there steadily driving up prices? Are there big players who are in the know?  And what are the consequences for individuals?

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