2012-04-22 — wallstcheatsheet.com
... the taxi driver indicator is still being used to gain a read on financial markets. CNBC recently aired a segment that asked people walking along the Santa Monica Boulevard boardwalk in California which item they would rather have: $600 in cash, one share of Apple stock, an iPad 2 or one-third of an ounce of gold. While it is not a perfect example of the taxi driver indicator, it showed insight to how some, if not most Americans think. All items available to choose from were valued around $600, but the respondents had different views on the best pick.
Despite being called a bubble numerous times in the past few years, very few respondents picked the gold coin. In fact, only one man chose the gold coin and when asked why, he responded, "because gold's going to $3,000." The one share of Apple or the iPad 2 was the more popular choice. This simple yet eye-opening segment portrays the typical investment mindset in America. After an 11-year bull market run, the average Joe is still unaware of the benefits that gold offers. To call gold a bubble is not only short-sided, but wrong.
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