THE REAL STOCK MARKET AIN’T SO PRETTY

When priced in something that has real value and cannot be debased (gold), one can clearly see that stocks have been in a severe bear market since 2000. (If one were to look at PE valuations during the same period they would see the same bear market.) In the chart below I have marked the final phase of several gold C-waves. These highly speculative periods tend to end as a parabolic blowoff rally with gold stretched quite far above the 200 day moving average. The final phase of a C wave rally also tends to correspond with another leg down in the Dow:gold ratio. After an extended two year consolidation I think we are now due for that final explosive . . . → Read More: THE REAL STOCK MARKET AIN’T SO PRETTY