Our chart of the week shows why the rich, seasoned investor looks at the recent stock rally and shrugs his shoulders.
You see, the rich investor measures his gains not in the arbitrary value of government paper (dollars), but in real, honest money: gold.
This week's chart displays the 2009 return of the S&P 500 in terms of gold. Nominally, stocks are up big since May. But the U.S. dollar has plummeted in value... and the price of "real stuff" like crude oil, copper, and gold has soared. Measured in gold, stocks have drifted sideways for seven months... and are nearing a new short-term low.
We stand by what we said last month: Sure, dollars are flowing into stocks right now... but the yahoos running the controls in Washington D.C. are making those dollars worth less and less every day.
You see, the rich investor measures his gains not in the arbitrary value of government paper (dollars), but in real, honest money: gold.
This week's chart displays the 2009 return of the S&P 500 in terms of gold. Nominally, stocks are up big since May. But the U.S. dollar has plummeted in value... and the price of "real stuff" like crude oil, copper, and gold has soared. Measured in gold, stocks have drifted sideways for seven months... and are nearing a new short-term low.
We stand by what we said last month: Sure, dollars are flowing into stocks right now... but the yahoos running the controls in Washington D.C. are making those dollars worth less and less every day.
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