Dow Jones Industrials
Great site, thank you. So where do we go from here? Momentum had also improved, creating a bullish divergence of a higher low. That is important when we're trying to read that variable from a different machine. Great work with you gold valuation there.
If Gold is a store of value, then food is the ultimate store of value. Gold stores a lot of valu in a little weight, but it is manipulated by key p;ayers and hype. Grains are pretty stable and reflect normal demand.
I would like permission to use your chart of the DOW's year performance priced in gold in my forthcoming book The Impending Monetary Revolution, the Dollar and Gold. I would, of course, list your website as the source, which would be a promotional benefit to you. Thank you for your consideration of this matter. I look forward to a response from you. In appreciation, I would be glad to send you a complimentary copy of the book when it is published.
Please give me a postal address to which I can send this. Makes me wonder if the strategy to go for is holding stocks until a sugar high is reached, and then dumping them into gold. Imagine anyone who got onto stocks in , and gold in ; they made 13x their original investment in real terms! If so, that's a very compelling chart — all that compounded reinvestment still isn't enough to keep up with gold in the current environment…. I use the same system as Yahoo Finance for adjusted closes.
I have always been comforted when historical financial data is presented to me graphically. However, in most cases I'm unable to interpret the data in any meaningful way. I'm not sure what all those charts shown above are telling us.
Do they indicate that the market currently is wildly overblown relative to gold, or maybe they're telling us that gold is wildly undervalued relative to the market? However, I do understand "flat" when I see it. Hi Jarek, thanks for the comment. I think of gold as the ultimate form of cash, very liquid, in high demand worldwide, with minimal counter-party risk.
When you see a rising chart, they would prefer to have that asset instead of cash. The price of an asset can go down for a long time, and then go down even further for a long time again! But eventually, for a tangible asset, someone will come to the conclusion that a higher price is justified, and the selling will stop until a higher bid comes in. Then the price begins to rise. But again, as it is going up, there are people on both sides of each trade who decide that at that price, the asset is fairly valued.
Of course, for some assets, like government issued currencies, bonds, or stock shares, which have no intrinsic value or usefulness in their own right, you can reach a point where no one will make a bid on them at all, and they cease to have any value whatsoever.
About a year a go, that sentiment started to reverse. Will the reversal turn into a full-blown bull market, or is it just another bear market rally?
Only time will tell. As you might be aware, gold is actually NOT a perfect hedge against inflation but is still better than just holding cash. Hi Andrew, I think you can find the info you are looking for on other financial sites.
Gold, while certainly not perfect, seems to do a better job over the long term. Great site, thank you. Equity prices are a even more stretched based on historical measures than depicted above.
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With that, I wanted to share one of my favorite charts when looking at the market in periods of a down trend. The following chart looks at a spread. The first part of this spread is market breadth, which simply measures the number of stocks that are going up or going down as the stock market truly is a market of individual stocks and we want to know what those individual stocks are doing. In fact, the current level has only been met four times in the last 15 years.
Most recently in and Historically when the market has declined by this degree, some type of consolidation and retest takes place. So have stocks fallen to a low? Anyone that gives you an answer with any level of certainty is lying to you.
From here I want to see how the market responds, as nothing matters unless the market confirms what the data is suggesting. At the end of the day, price is what pays. I look forward to seeing what great things has in store. Be well my friends! The market has stumbled. With the rise in volatility, decline in stock prices, the financial news stories can become sexy again. Special Reports can be run in financial media and the gong banging analysts can make their should-be satirical, but sadly self-believed, predictions of the next boom and bust.
With this decline in financial assets, with nearly every asset class seeing some degree of red, it can be easy to fall into a pit of sound bites and a vacuum of your own market themes.