I pulled the interesting chart below off of a recent King World News interview of Michael Pento. This chart is the raw facts, unfiltered by emotion. It shows that gold has actually been the better investment since the start of the great recession. That's right, the worthless "pet rock" has actually outperformed the DJIA over the important period shown. People seem to have forgotten how badly stocks crashed. They forget that the crash was so bad that shares have tripled while gold got cut in half and still gold is outperforming stocks.
The DJIA has no intrinsic value folks. All that is left is volatility. Its become nothing more than a casino. This will not be the savings choice of the coming more conservative generation. I suspect that these charts will now begin to diverge. Gold will turn up as stocks turn down. Have you ever felt the weight of a gold or silver coin in your hand? It feels real. You know it is real. The stock market on the other hand is a hollowed out fantasy. Sooooo many people have invested x dollars and now they want 2x, 3x, 5x in return. The funny part is that many of these people are smart and educated yet they throw their life savings into the Ponzi without a second thought as to the mechanics of the stock market. HOW is it, exactly, that everyone can get more out of it than they put in? Don't give me hand waving about net present value and cash flow and other crap that does not matter one toot when it comes to actual share redemption for cash. All of those things are theory and principles and to be quite honest, marketing lies by wall st con men. The cash does not exists in order to cash everyone out. As soon as the boomers begin their draw down, game over.
Sunday, September 27, 2015
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