Another Rule of Thumb:The same theory is at work when the price is falling.
Final Rule of Thumb: Getting rich is easy if you learn how to predict when there will be a change of direction.
I like the rules of thumb; one thing I don;t like in how the media reports anything going up in price is how more often than not it is an indication of the US dollar FALLING. When the dollar falls, everything (gold, gasoline, stocks, groceries) goes up in price. This is exactly what has happened since Obama’s election in 2008 (and subsequent spending spree), and it has been downplayed/concealed by the media.
Everyone is concerned about smaller paychecks due to higher taxes; they’ve already been getting smaller paychecks due to higher costs of everything.