Friday , 29 March 2024

Tag Archives: Dow:Gold ratio

What Gold Is Telling Us About Stocks & What We Should Do As a Result

If you believe (as I do) that gold is a solid way to “price” other assets because of its characteristics of being rare and stable in quantity – then the simplest way to profit from this trend is to wait for it to reverse - and when it turns around, sell gold and buy stocks. [Let me explain further.] Words: 431

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Marc Faber: We Could Have a Crash Like in 1987! Here’s Why (+2K Views)

Marc Faber has stated in an interview* on Bloomberg Television that “I think the market will have difficulties to move up strongly unless we have a massive QE3 (something Faber thinks would "definitely occur" if the S&P 500 dropped another 100 to 150 points. If it bounces back to 1,400, he said, the Fed will probably wait to see how the economy develops)..... If the market makes a new high, it will be with very few stocks pushing up and the majority of stocks having already rolled over....If it moves and makes a high above 1,422, the second half of the year could witness a crash, like in 1987.” Words: 708

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Gold is Not in a Bubble – Here's Why

"Gold is in a bubble" is a comment that is usually made with little evidence to support this claim. Typically, the primary support is the fact that the Gold price has meaningfully risen over the last decade but citing a rising price is simply insufficient to draw such conclusions. [Let me explain.] Words: 534

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Lassonde on Gold: "What can we expect? I think we can expect fireworks…." Here’s Why (+2K Views)

“There’s no cliff here. There’s no need to panic whatsoever...[In] the two previous bull markets in gold, 1980 and 1934, gold ended at essentially a 1/1 ratio with the Dow Jones and the Dow today is over 13,000. Would I be surprised to see gold past $10,000? No. I know it sounds crazy but it sounds a heck of a lot less crazy than it did five or six years ago.”

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Which Will It Be: Gold is About to Go Way UP or the Dow is About to Go Way DOWN?

It is very understandable why investors believe America’s engines are ready to roar again because economic indicators in America are turning up even though bad news barrages us from all sides... [That being said,] I believe the Dow Jones Index has not bottomed when viewed from an historical perspective with gold. We have further to go down in the Dow/gold ratio before the next big bull market begins. [Let me explain.] Words: 1250

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Gold Could Go to $7,275! Here's Why

With gold trading Thursday (August 18) at close to $1835/oz, many are asking if gold is in a bubble. While gold may be expensive relative to its price last year, how does it compare with that of the S&P 500 -and, as such, how much higher might we expect gold to go]? Words: 346

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Predicting the Future Price of Gold Is All Relative – Here's Why

“Gold bugs” routinely solicit my prediction regarding the future gold price, assuming I must be an “educated” gold bug since my hedge fund happens to maintain large gold exposure... [but such an answer] depends on variables [such as] what time period? Next week? Month? Year? Ten years? [and] compared to what? U.S. dollars? Euros? Real estate? Gummi bears! [Let me explain.] Words: 955

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Richard Russell: Demise of the "Yankee Dollar" vs. the Rise in Gold

Sadly, the great American public doesn't understand what is happening...[and that it will be] on a greater scale than has ever occurred before in the history of mankind. It's going to hit the current generation of Americans like a whirlwind. It will be historic in its intensity and destructiveness. [Here is an attempt to enlighten them.] Words: 939

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What Does the Future Hold for the Dow:Gold Ratio? (+2K Views)

The Dow:Gold ratio is defined as the ratio of the price of the Dow Jones Industrial Average divided by the price of gold [or] how many ounces of gold it takes to buy the 30-stock Dow. The current Dow:Gold ratio of 8.5 is up 21.1% from its 17-year March 6, 2009 low of 7.0 and 81% below its 1999 peak of 44.77. [What does the future hold? Higher gold prices, lower stock prices or vice versa?] Words: 400

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