Of course, there are time periods where KO has outperformed gold; there always will be. And there are valid ways to compare specific stocks to specific commodities. Unfortunately, this time frame simply does not work, the future time frame is just a wild guess, and, as others are pointing out, for every KO, there are many other stocks for the past ten years, and, of course, the next ten years, that have eaten/will eat KO's lunch. CSCO/KO 1990 to 2000, AAPL/KO 2000/2012, etc.
Let's see..... KO - project the past 10 years performance over the next ten years, from the standpoint of it's worthiest measure..dividends. AU - purchase now only after missing a 500% return since 1999, ignoring an actual 630% trough to peak gain between 1999 and 2012. Neither of these significant factors did you care to even casually mention.
Then, project KO as if the current trend will continue, while totally ignoring the potential for a ten-year trend for AU that compares to the past 10-13 years.
It's so convenient to purchase gold now, AFTER the 500+% return since 1999., actually closer to 630% from trough to the last peak....and, at the same time, projecting KO forward to reflect it's performance of the past ten years while IGNORING the past 10 years for gold.......SERIOUSLY????
The Dow is just a few ticks away from the 14,000 marker, but it may not make it there, says CNBC's John Melloy. Why? Take a look at small-cap stocks, he says. Stocks with smaller market values – as represented by the Russell 2000 (IWM) – got pounded. As smaller companies are considered to be riskier than their large-cap counterparts, they're considered to be a leading indicator of the "animal spirits" that lead a rally, Melloy says. [View news story]
I'm a great fan of Bob Bronson. So much so, that with his permission, he is quoted in my new book.
However, here's a very recent one that went a little different from plan, suggesting, 3 years ago, an imminent peak and a decline into '12 & '13. We're still waiting.
So, in spite of his extensive analysis and conclusions......this week, his conclusions, which I do not have permission to repeat here, are shall I say, much less than bullish over all time ranges beyond the very short term.
Your chart reference is from 2009, projecting a bullish environment within 5 years at that point.
It's obvious, in retrospect, that not only are the chart projections conclusions flawed, but, even a year later, my 2010 reference, there was still a need to compensate for multiple rounds of QE.
The Dow is just a few ticks away from the 14,000 marker, but it may not make it there, says CNBC's John Melloy. Why? Take a look at small-cap stocks, he says. Stocks with smaller market values – as represented by the Russell 2000 (IWM) – got pounded. As smaller companies are considered to be riskier than their large-cap counterparts, they're considered to be a leading indicator of the "animal spirits" that lead a rally, Melloy says. [View news story]
How do you support that opinion?
Or, better yet, just respond as soon as gold and oil continue their decline, as they were in 1994.
The Dow is just a few ticks away from the 14,000 marker, but it may not make it there, says CNBC's John Melloy. Why? Take a look at small-cap stocks, he says. Stocks with smaller market values – as represented by the Russell 2000 (IWM) – got pounded. As smaller companies are considered to be riskier than their large-cap counterparts, they're considered to be a leading indicator of the "animal spirits" that lead a rally, Melloy says. [View news story]
All the bears are dead at all-time highs, right?
All time highs - sell signal?
Well, believe it or not, most significant pullbacks begin from the point of all-time highs. The past three times that the Dow Tranports reached all-time highs, in 1999, 2007, and 2008, the S&P 500 began significant and lengthy retreats from their corresponding levels.
The Dow Industrials closed at an all-time high on October 9, 2007, a perfect time to sell, given the 20% loss by July 2, 2008.
The last 'perfect time to buy' in March of 2009 were, on the S&P600 and the Dow Industrials, near or at 12-year lows, and almost 54% below the 2007 all-time high.
Persistent Deflation in Consumer Prices Screams Deleveraging [View article]
Don't expect to see many people pay what you see on the sticker. ".... I didn't see any $20,000 Tauruses Or $30,000 ones. In fact, the price on the Taurus shocked me - $40,000!!??..."
There is extreme optimism and desperation baked into those initial asking prices.
Upon initial introduction several years ago, I recall seeing new Chrysler Pacificas on introduction, priced in the mid-upper 30's. After slow sales, Chrysler removed the back seat, lowered the trim levels, options, etc. and in short of two years, new Pacificas could be purchased for almost 10,000 less than the first year models.
Detroit Newspapers October 27, 2004 "Up until now,.... with top-of-the-line, loaded models coming in at $40,000 or more...The 2005 Pacifica FWD (for front-wheel drive) eliminates the original model's unique 2+2 second- and third-row seat...starting price is also a palatable $24,995, which is sure to be a hit with families..." (link to Cars.com site too long)
Keep watching those Taurus stickers, and their options, features, trim levels, etc. and report back in 30 months.
Gold Vs. Coca-Cola [View article]
Gold Vs. Coca-Cola [View article]
KO - project the past 10 years performance over the next ten years, from the standpoint of it's worthiest measure..dividends.
AU - purchase now only after missing a 500% return since 1999, ignoring an actual 630% trough to peak gain between 1999 and 2012. Neither of these significant factors did you care to even casually mention.
Then, project KO as if the current trend will continue, while totally ignoring the potential for a ten-year trend for AU that compares to the past 10-13 years.
This is the worst kind of comparison.
This took effort; not the best kind of effort.
You're not serious.
Gold Vs. Coca-Cola [View article]
No, you're not.
I'm done.
Sorry Bulls, But This Is Still A Secular Bear Market [View article]
The Dow is just a few ticks away from the 14,000 marker, but it may not make it there, says CNBC's John Melloy. Why? Take a look at small-cap stocks, he says. Stocks with smaller market values – as represented by the Russell 2000 (IWM) – got pounded. As smaller companies are considered to be riskier than their large-cap counterparts, they're considered to be a leading indicator of the "animal spirits" that lead a rally, Melloy says. [View news story]
he is quoted in my new book.
However, here's a very recent one that went a little different from plan, suggesting, 3 years ago, an imminent peak and a decline into '12 & '13. We're still waiting.
http://bit.ly/XV1GXu
So, in spite of his extensive analysis and conclusions......this week, his conclusions, which I do not have permission to repeat here, are shall I say, much less than bullish over all time ranges beyond the very short term.
Your chart reference is from 2009, projecting a bullish environment within 5 years at that point.
It's obvious, in retrospect, that not only are the chart projections conclusions flawed, but, even a year later, my 2010 reference, there was still a need to compensate for multiple rounds of QE.
The Dow is just a few ticks away from the 14,000 marker, but it may not make it there, says CNBC's John Melloy. Why? Take a look at small-cap stocks, he says. Stocks with smaller market values – as represented by the Russell 2000 (IWM) – got pounded. As smaller companies are considered to be riskier than their large-cap counterparts, they're considered to be a leading indicator of the "animal spirits" that lead a rally, Melloy says. [View news story]
Or, better yet, just respond as soon as gold and oil continue their decline, as they were in 1994.
The Dow is just a few ticks away from the 14,000 marker, but it may not make it there, says CNBC's John Melloy. Why? Take a look at small-cap stocks, he says. Stocks with smaller market values – as represented by the Russell 2000 (IWM) – got pounded. As smaller companies are considered to be riskier than their large-cap counterparts, they're considered to be a leading indicator of the "animal spirits" that lead a rally, Melloy says. [View news story]
All time highs - sell signal?
Well, believe it or not, most significant pullbacks begin from the point of all-time highs. The past three times that the Dow Tranports reached all-time highs, in 1999, 2007, and 2008, the S&P 500 began significant and lengthy retreats from their corresponding levels.
The Dow Industrials closed at an all-time high on October 9, 2007, a perfect time to sell, given the 20% loss by July 2, 2008.
The last 'perfect time to buy' in March of 2009 were, on the S&P600 and the Dow Industrials, near or at 12-year lows, and almost 54% below the 2007 all-time high.
Remember 'buy low, sell high'?
Persistent Deflation in Consumer Prices Screams Deleveraging [View article]
".... I didn't see any $20,000 Tauruses Or $30,000 ones. In fact, the price on the Taurus shocked me - $40,000!!??..."
There is extreme optimism and desperation baked into those initial asking prices.
Upon initial introduction several years ago, I recall seeing new Chrysler Pacificas on introduction, priced in the mid-upper 30's. After slow sales, Chrysler removed the back seat, lowered the trim levels, options, etc. and in short of two years, new Pacificas could be purchased for almost 10,000 less than the first year models.
Detroit Newspapers October 27, 2004
"Up until now,.... with top-of-the-line, loaded models coming in at $40,000 or more...The 2005 Pacifica FWD (for front-wheel drive) eliminates the original model's unique 2+2 second- and third-row seat...starting price is also a palatable $24,995, which is sure to be a hit with families..."
(link to Cars.com site too long)
Keep watching those Taurus stickers, and their options, features, trim levels, etc. and report back in 30 months.