Thursday, August 4, 2011

The Stock Market almost made a new bear market Real terms

The "real dow", which almost nobody talks about, and which was crashing even as nominal values were going up in 2003-2007, has just about made a new bear market low today, at 6.89 ounces of Gold. Compaire this to over 40 ounces of Gold in 1999. I expect this ratio to go to 1 or lower. This means Gold will be worth as much, if not more, than the DOW at the bear market low. I expect this to be between 400-1000. It is going to be a long way down, even in nominal terms.

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