“In comparing 5-year charts for Gold and the DOW, stocks win. “
Same thing was said in 2007-2008...just before a massive stock collapse and many people lost everything.
Gold isn’t an investment. It is a hedge against a collapse.
The fed is propping up the markets with $1+ trillion every year. The stock market is valued at about $15 trillion. The fed has pumped in over $4 trillion, or about 25% of the market’s value. That is a massive pump, entitled to a massive dump. The fed could collapse the markets and easily own half the US economy by buying up another 25% at deflated prices once the dump happens.
Communism by the numbers.
Those who refuse to learn from history are doomed to repeat it.
The problem is QE can’t be unwound, politically. There’s a chance at ending Maobamacare, because people understand higher premiums, bad websites, losing doctors, etc.
But tapering QE, which is necessary for a stable money supply, will cause a depression. Whoever orders that will be a one-termer. Very few will understand why tapering is needed.
So what happens next will either happen slowly or quickly: higher interest rates and much higher taxes, defaulting state/local governments, loss of reserve currency status. This is the future. Period.