Sunday, August 15, 2010

A Backlashing

A consistent backlash that I hear is "you've been saying the market is going to crash forever!".  Or "You keep telling me to sell all of my stocks and buy gold".  Actually, since May 2000, I've been saying "shift out of stocks and into commodities with a specific focus on gold and oil".  This chart sums of the last ten years.  Remember, the "boiling frog" doesn't feel the slow increasing heat.

S&P500 vs Gold
The historical chart of the Dow Jones Gold Ratio defines the inflection points very well.

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