“You can’t print gold.”
For some perspective on the long-term performance of the stock market, today’s chart presents the Dow priced in another global currency — gold. Today’s chart illustrates how it currently takes 15.7 ounces of gold to ‘buy the Dow’ (i.e. the Dow / gold ratio) — well off the 44.8 ounces it took back at its peak in 1999. From the 1990 peak until 2011, the Dow (priced in gold) endured a massive bear market. Since 2011, gold has struggled while the Dow has continued to rally. All of this has resulted in the Dow (priced in gold) rallying in a well-defined, upward sloping trend channel. Despite this strong rally, however, the Dow (priced in gold) remains well below its 1999 peak and is currently testing support of its four-year upward sloping trend channel.
The DOW has been pumped by (newly created) Fed money that has allowed the mega corps to have it at almost no cost to buy back their own stock and pump it’s value up.
Real money never lies but the financial markets and the media will, which do you trust?
Book It…This is Just a Head Fake..Dow to Gold Goes 2 to 1 again…Mike in Ct