If you were to cut out the extremes - equity over-valuation in the late '20s, 60's and '90s the ratio has consistently traded below 10. A move to 5 now would imply (estimated by eye) a doubling in the gold price or a halving in the Dow.
New 'Crash' Warnings for U.S. Markets [View article]
I take it you're not long the market then?
An more nuanced report of Marc Faber's recent comments would mention that he sees a crash coming BUT is uncertain as to the timing. It could be a few days or weeks or it could be in several years, but given the vast imbalances in the global economy when it comes is may well rock the foundations of capitalism!
Colourful, eh? I guess if you can afford to stay out of the market you probably could. Otherwise, keep working it, but stay frightened.
Chart of the Day: Gold and the Dow [View article]
Sentiment Overview: A Scarcity of Bulls [View article]
New 'Crash' Warnings for U.S. Markets [View article]
An more nuanced report of Marc Faber's recent comments would mention that he sees a crash coming BUT is uncertain as to the timing. It could be a few days or weeks or it could be in several years, but given the vast imbalances in the global economy when it comes is may well rock the foundations of capitalism!
Colourful, eh? I guess if you can afford to stay out of the market you probably could. Otherwise, keep working it, but stay frightened.
Promising Signs for the Economy and the Equity Markets [View article]