Dow Priced in Gold
June 24, 2011
Chart of the Day - For some perspective on the long-term performance of the stock market, today's chart presents the Dow priced in another global currency � gold (i.e. the Dow / gold ratio). For example, it currently takes less than a mere eight ounces of gold to 'buy the Dow' which is considerably less than the 44.8 ounces it took back in 1999. Priced in gold, the Dow has been in a massive 11-year bear market. Recently, the Dow (priced in gold) stopped declining for long enough to break above its six-year, accelerated downtrend channel. However, shortly after the break out, the Dow (priced in gold) pulled back to post-crisis lows.
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