Scott, you got my attention with the stock to gold ratio -- I was looking last week at the S&P to gold ratio as well -- I am troubled by the ratio as I would prefer to see strength in stocks -- I have to ponder this some more -- a correction in gold about now would be a good thing...
Intel, Qualcomm, Apple, all reported earnings in significant excess to what was expected. Market participants IMO are still far too pessimistic.
John: Dittos
Well, I don't understand these charts at all, but I still think all gold is fool's gold.Assets that can generate income, and even increasing amounts of income over time, are the sorts of investments I like.Gold?Investors are chary now, and maybe they have a right to be. Who knows where is the next Long-Term Capital Management, or one-day 22 percent drop on the Dow (1987). The tech bubble. The Bush years.Still, I think we are on the cusp of a global boom, that will include the USA. I am especially interested in the yuan gaining ground as international reserve currency, thus reducing the exchange rate for the dollar. As there are chronic gluts of capital, I do not think this will raise interest rates in the USA, but will result in a surge of exports. Look for secualr bull markets in real estate and equities. Gold may rally, as more Chinese and Indians buy baubles. So be it.
Charts are farts from the past. They have zero abilities as to predicting the future.It is a market of stocks. Not a stock market. Over these same time periods, there have been plenty of stocks that have far better returns than gold and or silver.When models and or charts turn on, brains turn off.
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