Posted on 05/13/2010 6:19:46 AM PDT by blam
Is The S&P As Measured In Gold The Ultimate Sign Of The Fed's Bluff Being Called?
Joe Weisenthal
May. 13, 2010, 9:02 AM
Last night we jokingly posted a chart of lean hogs priced in gold, but where you see this kind of calculation typically made is in stocks.
Arthur Cutten at Jesse's Cafe Americain has posted the latest update of this, and not surprisingly, it's an ugly chart.
Cutten argues that this is why Bernanke "fears" gold. We're not so sure if that's what it means, but it is interesting. Thoughts?
[snip]
(Excerpt) Read more at businessinsider.com ...
A mirage? Nah, the most transparent gov’t in the world wouldn’t lie to us.. Would they?? We are in a recovery because they said so. LOL
Here is a point and figure chart of SPX/GOLD.
In 2001 SPX was 5.1 times the price of gold.
Today SPX is .95 times the price of gold.
Paper dollars are increasingly becoming worthless.
http://stockcharts.com/def/servlet/SC.pnf?chart=$SPX:$gold,PLPADANRBO[PA][D][F1!4!2.5!!2!20]&pref=G
Goldbug ping
I myself don’t get too excited about gold vs S&P kinds of comparisons. In 2008, I don’t even care what the ratio was, gold got beaten badly along with the S&P, and silver was cut IN HALF.
Mail me to get on or off the Free Republic Goldbug Ping List.
Goldbug ping
The only thing transparent about 0bama&his henchman is their duplicity
He speaks with forked tongue ..all the time. He's a slickster who thinks he charm and con everyone
If you really want to see the S&P deflated, show it priced in shares of Apple stock.
On the other hand, you could try plotting the S&P 500 starting in 1933, based on the price of gold. It might show something a little different.
You also need to remember that unlike Gold, shares of stock often pay dividends, so just looking at the price of the stock isn’t enough.
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