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Investing Strategies / It's Earnings That Count


Subject:  Re: Kondratieff Winter Date:  12/19/2008  10:14 PM
Author:  hheiserman Number:  1629 of 1817

This link takes you to a chart showing the Dow-Gold ratio back to 1885.

Ian Gordon, who I just interviewed for Real Money (see column, above), thinks Dow-Gold will trough at 0.25. Today, Dow-Gold closed at 10x. So, he forecasts a further declines in stocks coupled with much higher gold prices.

Even if we "just" bottom out at previous troughs (1x-3x), this ratio implies a hard time in the years ahead for stockholders.

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