Dow

[airedale]

The other side of the coin is that gold is in a startling uptrend dating back to 2002.

"Hoop, DOW is in a shocking downtrend if GOLD is your currency"

[Hoop]

The other side of the coin is that gold is in a startling uptrend dating back to 2002.

"Hoop, DOW is in a shocking downtrend if GOLD is your currency"

Correct me if I not included something but I think the chart is made up of 3 variable factors...Dow index priced in US$, gold price, P/E Ratio.

P/E ratio is gradually falling (long term secular style) and we expect it to fall another 50% before the secular bear market cycle ends which still could years away...downward pressure on chart.

POG expected to go up some say to $us2000......downward pressure on chart

US $ still in downtrend but treasury bonds look to be bottoming......still short term downward pressure on chart...but possible upside medium term.

These variable factors point to continuing downtrend action...


Been thinking about this chart Winner posted ...I know the USA economy is stuffed but by x6 fold decrease in the last 10 years ..I find that hard to believe.,,,something is over cooked here...8 or 9 is too low.....
to get back to a still low 15 it would need a 60% decrease in POG or 60% increase in the DOW increase or some sort of combination of the two...I can't imagine the annualised PE ratio rising by any large amount.

Thoughts?...