Speaking Of A Money Illusion........

As assumed last Friday the Dow finally hit 10 K. After looking at the chart you probably know why i prefer gold....... I think a few years from now this ratio will be even more favourable.....Wouldn´t surprise me if we see similar ratios like in 1980 . The same is true when you price the S&P 500 in Gold .....

Wie bereits letzten Freitag hat der Dow die 10 K geknackt. Habe das mal zum Anlaß genommen das Dow/Gold upzudaten. Unschwer zu erkennen warum ich seit langer Zeit Gold bevorzuge.... Meiner Meinung nach wird sich dieses Verhältnis zukünftig noch weiter zugunsten von Gold beschleunigen.... Ich würde selbst ein Verhältnis ähnlich dem Jahr 1980 für nicht "unwahrscheinlich" halten. Ähnlich verhält es sich wenn man den S&P 500 in Gold kalkuliert .....



WSJ

And you thought you had broken even. If investors had bought gold when the Dow first closed above 10000 in March 1999, they'd be up almost 280%.

Put another way, Dow 10000 a decade ago "cost" 36 ounces of gold, treating each Dow point as $1.

When the Dow revisited that level Wednesday, it was worth only 9.276 ounces of gold.

In oil terms, the Dow has gone from 609 barrels to 133.

Chart via Zero Hedge

bigger / größer

Dow 10,000: A Celebration Jesse

Team coverage today on Bloomberg by the Money Honeys as the Dow Jones Industrial Average crossed 10,000 intra-day, led by J.P. Morgan, in a move that surely epitomizes the illusions of wealth granted by modern accounting practices.

Can you believe the NYSE had the nerve to prepare new Dow 10,000 hats and distribute them for today? The first time the Dow Industrials crossed 10,000 was in 1999. The last time it closed over 10,000 was in October of 2008, just
before the most recent plunge of the collapsing credit bubble.

That does not speak well of equities for the "buy and hold" crowd, which has surely had a wild ride if they have indeed managed to hold on for the last ten years, and ex-dividends and fees and commissions and inflation and a plunging US dollar and soaring commodities are... even.

AMEN :-)

UPDATE:

The following videos are too good to be buried in the comment section..... Judging from this interview Bloomberg has morphed into another version of CNBC.......

Denke die folgenden Clips sind zu gut um in den Kommentaren versteckt zu werden..... Muß gestehen das ich nach dem folgenden Interview den Eindruck habe das sich Blommberg und CNBC nicht mehr wesentlich voneinander unterscheiden......

The Colbert Report	Mon - Thurs 11:30pm / 10:30c
The Money Shot
http://www.colbertnation.com/
Colbert Report Full Episodes Political Humor Michael Moore

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Dow Jones Rebounds to 1999
http://www.thedailyshow.com/
Daily Show Full Episodes Political Humor Ron Paul Interview

Chart Of The Day "Dow Vs Gold"

The following chart was buried in the comments from my previous post on gold (Gold’s Post-Bubble Performance In The UK, US And Japan. ). I think this perspective on the valuation of gold deserves "deserves" a sperate post. Further blogging activity will be light until 2009

Der nachfolgende Chart war in den Kommentaen zum letzten Goldposting ( Gold’s Post-Bubble Performance In The UK, US And Japan. ) vergraben. Denke der ist so aussagekräftig das das ich Ihn nochmal gesondert poste. Meine Blogginaktivität wird über die Feiertage bis Anfang 2009 minimal sein.

Chart Of The Day
How significant is this bear market? It all depends on how you measure. When measured in US dollars, the Dow currently trades 39.5% off its October 2007 record high. However, when measured with that other world currency (gold), the picture is actually more dismal. To help illustrate the point, today's chart presents the Dow divided by the price of one ounce of gold. This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold. For example, it currently takes 10.5 ounces of gold to “buy the Dow.” This is considerably less that the 44.8 ounces it took back in 1999.

When priced in gold, the US stock market has been in a bear market for the entire 21st century.

Dow vs Gold / Chart

so much for the "blockbuster" performance from the dow.......

soviel zur aussage wie nominale werte das bild verzerren können........

Despite today's lackluster performance, the Dow still trades near all-time highs. For some further perspective into the current rally, today's chart presents the Dow divided by the price of one ounce of gold. This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold. For example, it currently takes 19.2 ounces of gold to “buy the Dow.” This is considerably less that the 44.8 ounces back in the year 1999.

When priced in gold, the current stock market rally hasn't amounted to much. In fact, the longer-term trend is actually down! Stay tuned…

stock market rallies / dow since 1900

The Dow made another record high yesterday as it crossed the 13,000 level for the first time. To provide some perspective to the current Dow rally that began in 2002, all major market rallies of the last 106 years are plotted on today's chart.

Each dot represents a major stock market rally as measured by the Dow. So what does this chart show? As it stands right now, the current Dow rally would be classified as long in duration (now the fourth longest since 1900) but below average in magnitude. Stay tuned...