S&P Priced In Gold
US Stocks reached their peak in 1999, and have clearly been in a bear
market since 2001. From a high of 168 grams, they have fallen to the
20-25 level, a drop of 85%.
Since the bottom in March of 2009, prices have risen strongly when
measured in dollars, seen by many as proof that the recession is over
and recovery has begun to take hold. Yet when priced in gold, we see
that all of the "robust recovery" was the result of more dollar
debasement, as trillions of dollars created by the Fed's "quantitative
easing" and bailout programs flood into the market. In reality (aka
priced in gold), stock prices remained fairly flat from 2009 until July
of 2011, when they began falling to about 15% below their 2009 lows.
Since mid August 2011, stocks have been working their way higher, ending
2011 9.4% above the 2009 low, but still down 10.4% for the year.
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