Saturday , 17 February 2018


Stock Indices

The Dow & FTSE Priced in Ounces of Gold

gold

Once the temporary effects of past & current manipulation of the price of gold subsides we will have a continuation of the bear market in the Dow Jones and a continuation of the bull market in gold. If the secular cycle repeats, we can conclude that the Dow Jones will be priced at an ounce of gold or even less.

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Comparison of Past & Present Performance of Dow Is Meaningless! Here’s Why

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Every time the number of, or specific constituent, companies change in the Dow index any comparison of the new index value with the old index value is impossible to make with any validity whatsoever. It is like comparing the taste of a cocktail of fruits when the number of different fruits and their distinctive flavours – keep changing. Furthermore, because of the application of the ever changing Dow Divisor, we are always comparing a basket of today’s apples with a basket of yesterday’s pears.

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Is This Market Correction – an Opportunity to Buy – or a Signal to Sell?

investing-hold-buy-sell

Stock market volatility, directed mostly to the downside this year, has caught the attention of anyone with funds at risk. The obvious question on most people’s minds is whether to get out or to put more money in. Advice going both ways is readily available. Here are some such articles. Take them into account and make your own decision regarding whether this correction is an opportunity to buy or a signal to sell.

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The NASDAQ is In a Bubble – Definitely! Here’s Why

bubbles

Investors generally assign higher multiples to many Nasdaq firms, as they expect significant future growth, but if volatility ensues and growth, which is already priced in, isn't realized by these firms a violent reaction to broken promises will ensue just as happened in 2000. For that matter there are a number of similarities between the current level of the Nasdaq index and back then that strongly suggest that the bubble is here. Let me explain why I believe that is the case.

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