Gold: Getting Personal

Interesting chart of the S&P vs. gold going back a few decades:


Joe Weisenthal’s take:

You can see that even with the recent upturn in stocks, relative to gold, gold has crushed stocks since 2000.

Arguably, 2000 represented a peak in belief in the capabilities of humans. The internet inspired all kinds of crazy optimism about how humans would re-shape the world for the better. The ebullience spread beyond the net. There was, for example, optimism about newways of transporting humans: Fuel cells! Segway!

Of course, the bubble crashed. Then we had 9/11. Then we had two wars. Then we had the housing implosion. Then we had the financial crisis. Then the horrible recession. Then the European crisis and the debt ceiling and everything else.

In other words, we had a series of a events that, for good reason, shook our faith in humanity. During this time, people thought about history on a large scale. And gold, having been used as a money for thousands of years, did pretty well, especially relative to stocks, which represent companies made up of humans.

So ultimately, the decline of gold and the rise of stocks is a big trend that everyone should cheer.

The huge corpus of economic research, which has informed the US’ efforts to stimulate the economy, is not a pile of garbage. You can do a lot without blowing things up, as the goldbugs claimed would happen.

And more broadly, this represents a breaking of the fever, and perhaps a return to thinking that humans aren’t such a horrible disappointment.

With gold’s recent declines, analysis such as that written by Weisenthal is all over the place.  Gold really gets personal with people.  For many, its strength or weakness has the ability to validate their economic and political views.

From a strictly trend following perspective, the S&P vs. gold relative strength relationship is potentially significant because of its history of providing long-term trends favoring one or the other.  If this ultimately does result in a major inflection point for the S&P vs. gold relationship, there will be important implications for those of us employing tactical asset allocation strategies in the years ahead.  Admittedly, simply observing the relative strength relationship between the two provides much less intrigue than can be found on talk radio or any number of other sources (but that can be a very good thing for investors who are just looking to make money).

HT: Business Insider

28 Responses to Gold: Getting Personal

  1. Patrice says:

    There is definately a lot to find out about this issue.

    I like all of the points you have made.

  2. Howdy! This is kind of off topic but I need some advice from an established
    blog. Is it very hard to set up your own blog? I’m not very techincal but I can figure things out
    pretty quick. I’m thinking about setting up my own but I’m not sure where to begin.
    Do you have any ideas or suggestions? With thanks

  3. website says:

    Permanent installations in vehicles gave way to the portable Bag Phones, furnished
    with a cigarette lighter plug. Larger organizations tend
    to have stricter, expressly written rules on etiquette.
    * Ability to change others’ perceptions by democratic

  4. Hey this is kind of of off topic but I was wanting to know if blogs use
    WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding know-how so I wanted to
    get advice from someone with experience. Any help would be
    greatly appreciated!

  5. gold in ira says:

    Hmm is anyone else encountering problems with the
    pictures on this blog loading? I’m trying to determine if its a problem on my end or if it’s the blog.

    Any feed-back would be greatly appreciated.

  6. For instance, you know that you can split the blue bird but do you ever know that destruction could
    be high if you split the bird on time. The touch sensitivity
    does have a very slight delay when you slide your finger across
    it, but after awhile you get used to it. I am acquiring my whole
    house carried out section by section as I can afford

  7. · Screenshot mode –make a perfect view on the screen of your battlefield 3 game.

    On the console versions, it is equally spectacular for that medium.
    For the past few years we have been seeing a devolution of this established trend to grassroots jihadists based in the west.

  8. Someone essentially help to make significantly posts I might state.

    This is the first time I frequented your web page and to this
    point? I amazed with the research you made to create this actual post incredible.
    Great process!

  9. It is not always about following a recipe letter for letter.
    It is that sturdy and durable that you will rarely have to take it to
    the service center for repairs. You initial need to understand how every single of them works and appear into the rewards and
    drawbacks of every one of these appliances.

    Look into my webpage Gardena R 40Li

  10. Unquestionably consider that which you said. Your favourite
    reason seemed to be on the internet the simplest factor to take
    into account of. I say to you, I certainly get irked
    whilst people think about issues that they
    plainly do not know about. You managed to hit the nail upon the highest and defined out the entire thing with
    no need side effect , folks could take a signal.
    Will probably be again to get more. Thanks

  11. You should be a part of a contest for one of the
    most useful blogs on the internet. I’m going to recommend this blog!

  12. Brianne says:

    I used too be able to find good information from your content.

    Feel free to srf to my weebsite … blog submissions (Brianne)

  13. hey there and thank you for your information
    – I have certainly picked up anything new from right here.
    I did however expertise a few technical issues using this
    web site, as I experienced to reload the web site
    a lot of times previous to I could get it to load correctly.
    I had been wondering if your web hosting is OK? Not that I’m complaining, but sluggish loading instances times
    will very frequently affect your placement in google and could damage your high
    quality score if ads and marketing with Adwords. Well I’m adding this RSS to my email and could look out for a lot more of your
    respective intriguing content. Make sure you update this again very soon.

  14. Concepcion says:

    These tablets work by expanding your air passage so more air can get
    through. Snoring is a problem that causes great embarrassment for the person who snores and
    trouble or disturbance for the person who bears the snoring person. These substances are also known to
    contribute to sleep apnea, a dangerous condition that has been linked
    with cardiovascular disease.

  15. Porter says:

    Through fatness to sleep apnea as well as the cascading illnesses connected to each.
    Plastic surgery does not limit itself to enhancing
    physical beauty alone, after accidents and disturbing injuries, patients suffering from permanent deformities and scarring are usually advised to consult
    a plastic surgeon. The causes of snoring can be quite varied as so too can the cures.

  16. This page certainly has all the information and facts I needed about this subject and
    didn’t know who to ask.

  17. Hi there to all, the contents existing at this web site are truly awesome for people
    knowledge, well, keep up the good work fellows.

  18. Leopoldo says:

    It iss a dksgrace you do not have a donate button! I’d most definitely donate to this fantastic website!
    I guess for now i’ll settle for reserve-marking and incorporating your RSS feed to
    mmy Google account. I glance ahead to brand new updates and will talk about this
    web site with my Facebook group. Chat soon!

  19. What’s Happening i’m new to this, I stumbled upon this I’ve found It absolutely helpful and it has helped me out loads.
    I am hoping to give a contribution & help different customers like its
    aided me. Good job.

  20. I referred to as them Sweet Potato Sunshines” and the
    youngsters ate them as speedily as I could make them.

  21. Zulma says:

    I am truly glad to glance at this blog posts which
    includes plenty of valuable facts, thanks for providing such statistics.

  22. Saray says:

    Que recuerdos me trae esta consola playstation3 y ahora le he regalado una a mi
    hijo muy bien de pasta

  23. Mejor no podia estar aclarado

  24. Joan says:

    La mejor Play jamas realizada playstation3

  25. What’s up to every body, it’s my first visit
    of this weblog; this weblog carries amazing and truly fine stuff designed for

  26. Si quereis aprovisionamiento deportivo a precio de costo mirar en esta pagina

  27. what is a good college essay topic

    Gold: Getting Personal • Systematic Relative Strength • Dorsey Wright Money Management Systematic Relative Strength