You won’t hear these facts on CNBC. They wouldn’t dare discuss anything in inflation adjusted terms. The Dow is up a measly 7.3% over the last 16 years on an inflation adjusted basis. That’s the good news. In reality, we all know the CPI is understated by at least 3% to 5%. So, in reality, the Dow is significantly negative over the last 16 years. Using a true level of inflation would show the Dow not much higher than it was in 1966 at the onset of the welfare/warfare state and before the unlinking of our fiat currency from gold.
If you were a connected insider or friend of the Fed (aka Wall Street bankers) you’ve done quite well since March 2009. But, it seems that once the QE spigot was turned off in October 2014, the Dow has gone nowhere fast. This faux bull market is dying of old age and lack of Fed injected fiat. It’s a long way down to long term support.
The Dow is currently trading 4% below its May 19th all-time record high. For some perspective, today’s chart illustrates the inflation-adjusted Dow since 1900 — there are several points of interest. Take for example an unlucky buy-and-hold investor that invested in the Dow right at the dot-com peak of December 1999. A decade and a half later, the inflation-adjusted Dow is up a mere 7.3%. That is not altogether an impressive performance considering that over 16 years have passed. On the other hand, take the investor who bought right at the end of the financial crisis. The inflation-adjusted Dow is up a significant 119% from its financial crisis lows — not bad for a for a seven year investment. More recently, the inflation-adjusted Dow has broken below support of a trend that has existed since the end of the financial crisis induced bear market.
Hmmm
And what pray tell is it that the main stream media and Wall Street in general has been consistently bashing? Why gold and silver of course. As the stock market slowly implodes over the summer gold and silver will have become the play of the 21st century. Just in case you don’t believe me, over comming months as more and more of the really wealthy’s positions in the metals are revealed you will find that they have been stock piling the metals, buying the dips all along. JP Morgan currently has between 60 and 150 Million ounces of silver in its possession/control depending on who you believe. The Federal Reserve, you know that private US banking cartel that has taken the value of the US dollar from 1 to .25 cents in the last hundred years allegedly has 8000 tons of gold on hand! Buy low and sell high.
The movers and shakers have been out of the general stock market since the end of last year. What I find particularly interesting is how it was they managed to keep this unprecedented rotation into the metals & miners hidden from the general public for so long. Now that they have well established positions bought at the very bottom of the market (the miners are up collectively about 400% and they still haven’t returned to levels of just 3 years ago) Buy low and this time hold. Apparently, along with being really really rich, you are issued a crystal ball…….
Facts are so inconvenient to false narratives.
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Nov 2015 and Apr 2016 both failed to make new highs. Failure at new highs at 2 or 3 attempts = close open positions.