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John Lounsbury
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John Lounsbury, Managing Editor and Co-founder of Global Economic Intersection, provides comprehensive financial planning and investment advisory services to a small number of families on a fee only basis. He has a background which includes 34 years with a major international corporation, 25... More
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John B Lounsbury CFP
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Global Economic Intersection
  • Gold - How Can Some See a Bubble and Others Can't? 8 comments
    Aug 26, 2011 6:31 PM | about stocks: GLD, QQQ

    More great stuff today from the  5 Min. Forecast.

    The first graph is a completely accurate graph comparing the current gold market to the Nasdaq bubble.

    The second graph shows the same comparison.

    The second graph shows the 1971-82 gold price graph, which was, by most determinations, a bubble.

    This is a test:  Why do the two graphs give such a different picture?

    Answer:  Look at the two y-axes in the first graph.  The scale on the left (for gold) is expanded by nearly a factor of 3 vs. the right side scale (Nasdaq).  The second graph has both price charts on the same scale.

    What a difference honest comparisons can make.

    Stocks: GLD, QQQ
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Comments (8)
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  • Michael Clark
    , contributor
    Comments (11967) | Send Message
    John: Have you been blacklisted by SA? I don't see your articles any longer. I love it how they have sent the instablogs into the stratosphere, so they are difficult to find.


    The end of the rally happened on Friday -- I think -- even with the Bernanke orgiastic spurt at the end.



    Hope you are well. Good luck with the storm. Are you in the path?


    Gold until 2019.
    27 Aug 2011, 06:50 AM Reply Like
  • John Lounsbury
    , contributor
    Comments (4052) | Send Message
    Author’s reply » Michael - - -


    Good to hear from you.


    No blacklist. I have simply been overworked with client needs and Global Economic Intersection.


    I want to get more material on Seeking Alpha, but that means I have to write more and spend less time being an editor. I am working on making that happen.
    27 Aug 2011, 03:43 PM Reply Like
  • Michael Clark
    , contributor
    Comments (11967) | Send Message
    And the storm? Are you alright?
    28 Aug 2011, 01:44 AM Reply Like
  • John Lounsbury
    , contributor
    Comments (4052) | Send Message
    Author’s reply » Michael - - -


    We were on the edge of the storm and suffered no ill effects whatsoever. However, areas that I lived in most of my life in the northeast have been hard hit.


    Thanks for asking.
    29 Aug 2011, 03:10 PM Reply Like
  • optionsgirl
    , contributor
    Comments (5202) | Send Message
    I would love to see a chart of gold's path superimposed upon a chart of the margin increases required!
    27 Aug 2011, 04:25 PM Reply Like
  • John Lounsbury
    , contributor
    Comments (4052) | Send Message
    Author’s reply » OG - - -


    As I have time I'll look for that or for the data and do the graph. The key part of that is "as I have time."
    29 Aug 2011, 03:12 PM Reply Like
  • Leftfield
    , contributor
    Comments (4070) | Send Message
    Too bad Roubini is so determined to make a point and a splash he forgot about the truth. Nice job pointing it out; some of us need all the help we can get sorting out the truth and it's likely implications.
    27 Aug 2011, 11:59 PM Reply Like
  • curious_investor
    , contributor
    Comments (7) | Send Message
    Very insigthful. thanks.:)
    30 Aug 2011, 08:59 PM Reply Like
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