Saturday, October 10, 2009

The Last Tech Bubble is Dead, Long Live the Tech Bubble

Even when one disagrees with The Market Oracle, one must appreciate the good charts posted. The Dow to Gold Ratio, as the 20-year chart shows, has gone full circle. Stocks are as cheap, in terms of gold, today as they were in the early 1990's.

Common sense often offers the best investment advice; when gold is high and stocks are low, sell gold and buy stocks. The advice below, from The Market Oracle, is to buy gold and to sell stocks. I will not argue about the short term direction, other than to say that the next big move is stocks-up, gold-down.

in reference to:
"And here's a long-term 20 year chart of the Dow to Gold ratio with a prediction on where and when this ratio will next bottom based on the channel in this ratio chart that has formed:"
- Dow to Gold Ratio Update :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website (view on Google Sidewiki)

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