got gold..... ?
Yesterday, and again today, the S&P 500 (blue line) made a new all-time high (red line). This is an impressive feat considering the severity of the dot-com bust. For some perspective, however, today's chart also presents the S&P priced in another world currency -- gold.
For example, it currently takes 2.32 ounces of gold to “buy the S&P 500.” This results in what is referred to as the S&P 500 / gold ratio or the cost of the S&P 500 in ounces of gold and has been overlaid onto the chart (gray line) of the S&P 500 for ease of comparison. When viewed in this way, the 2002 to 2007 rally isn't nearly as impressive and, in fact, hasn't really been a rally at all. This goes to show that the yardstick matters.
disclosure: long gold, goldbugs/hui,