Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If you put $100,000 in the stock market at 2001 you would have $141,345.
If you put $100,000 in gold during the same time frame you would have $490,151.
Looks like the dow is getting beat up over the secular bull market for commodities.
And the inverse could be said if you bought stocks vs. gold in 1980 and sold in 2000. But anybody who bought stocks in 1980 and held them until today is much farther ahead than someone who bought gold or silver in 1980. Stocks always outperform gold and silver over the long term. I feel sorry for the ones that got sucked into buying gold in 2011 at its peak; it could be years or decades before they get their principal back, let alone realize any gains.
And the inverse could be said if you bought stocks vs. gold in 1980 and sold in 2000. But anybody who bought stocks in 1980 and held them until today is much farther ahead than someone who bought gold or silver in 1980. Stocks always outperform gold and silver over the long term. I feel sorry for the ones that got sucked into buying gold in 2011 at its peak; it could be years or decades before they get their principal back, let alone realize any gains.
no it doesn't. They simply fluctuate against each other. They cycle against one another. I say this because the cycle is a secular gold bull market, not stocks.
Otherwise I would own more stocks, not gold/silver bullion.
You guys are treating assets like they are in a vacuum by themselves and that is unrealistic.
You typically have rebalancing ,re-investment of dividends,adding money etc etc.
Real world presents different out comes then an asset sitting like a lump forever.
My best example is if you bought gold at the peak in the 1980's and bought it at the worst possible moment your real world outcome with rebalancing would have had it actually beating equities up until gold fell.
Yep,had you bought gold at the peak ,bought the same amount of a total market fund,bonds and cash on the same day and rebalanced once a year gold beat equities up until the roll back in gold we just had.
It is the action of your total portfolio working together that counts.
Arguing about static sitting assets by themselves is meaningless.
You guys are treating assets like they are in a vacuum by themselves and that is unrealistic.
You typically have rebalancing ,re-investment of dividends,adding money etc etc.
Real world presents different out comes then an asset sitting like a lump forever.
My best example is if you bought gold at the peak in the 1980's and bought it at the worst possible moment your real world outcome with rebalancing would have had it actually beating equities up until gold fell.
Yep,had you bought gold at the peak ,bought the same amount of a total market fund,bonds and cash on the same day and rebalanced once a year gold beat equities up until the roll back in gold we just had.
It is the action of your total portfolio working together that counts.
Arguing about static sitting assets by themselves is meaningless.
I agree, I am investing in different things at different times. Basically new money is being allocated to the most undervalued asset classes. While you aren't exactly saying this, (rebalancing and keeping an even balance, reducing overvalued to undervalued assets)) I just deploy new money to the undervalued and hold on.
That dow/gold chart shows the terribly inflationary effect of the FED over the last 100 years. Notice that each cycle top is higher than the last one. Basically the unsustainable credit bubbles. Then the market overshoots on the downside. The 1980 low was below the low in the early 30's. The FED had to slam on the breaks harder because of the excesses of the 60's.
It seems like this cycle could go below 1, gold being worth more than the dow? Although it could be years away. 2018, 2020?
Yet another historic day for that broad market index...
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
