Tuesday, November 10, 2009 7:28:11 PM
Anything priced in dollars goes up in price as the value of the dollar declines. A better measure of the performance of the S&P is to look at it priced in gold (i.e. how many ounces of gold would it take to buy the S&P) This is a more accurate representation since the price of gold has remained fairly stable for roughly 3000 years. As of July 2009, it takes about .96 ounces to buy the S&P. The long term average (1980 to today) is 1.74 ounces of gold to buy the S&P and the true high for the S&P (measured in gold) was in 1999 when it took 5.5 ounces to buy the S&P.
NOTE: THESE PRICES AND CHART GO TIL JULY 2009...YOU KNOW WHAT GOLD HAS DONE SINCE THEN...THE S&P IS EVEN CHEAPER NOW COMPARED TO THE CURRENT PRICE.
NOTE: BUT THESE ARE LAGGING INDICATORS AS THEY REPRESENT THE ECONOMY WE USED TO LIVE IN. DOW 14K HERE WE COME. (weeeeeeee)
NOTE: THESE PRICES AND CHART GO TIL JULY 2009...YOU KNOW WHAT GOLD HAS DONE SINCE THEN...THE S&P IS EVEN CHEAPER NOW COMPARED TO THE CURRENT PRICE.
NOTE: BUT THESE ARE LAGGING INDICATORS AS THEY REPRESENT THE ECONOMY WE USED TO LIVE IN. DOW 14K HERE WE COME. (weeeeeeee)
"During times of universal deceit, telling the truth is revolutionary" George Orwell
"The only thing worth globalizing is dissent." Arundhati Roy
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