Sunday, January 5, 2014

Will There Be Another Bubble?


An interesting Dow/Gold chart floating around. Some use this as evidence that Gold will soar while the Dow flounders. But that analysis is hard to see. Looks as if there are two 35 year cycles, one peak comes prior to the Great Depression in 1929. The Next Peak appears in 1965 and the recent peak appears in 2000! If such cycles are true, the next major bubble will occur in 2035 with the Dow being some 45 times the price of gold!

At the time of this writing, the Dow/Gold Ratio is close to 14.  Kind of makes you think twice about shorting the market and going long gold, huh?