Tuesday, December 1, 2015

Since the Year 2000 Gold vs the Nasdaq Lopsided Returns 15 Years Later....Beware of Buying Overvalued Markets(just like 2000)...We are Now into Our Third Stock Market Bubble! Buyer Beware!

12-1-15
Updated Monthly

Secular Market Top - Since January 2000

+  54.1% Dow       
+172.1% Transports 
+  98.7% Utilities

+41.6%  S&P 500
+25.5%  Nasdaq

+53.9%  30yr Treasury Bond

+268.0% Gold
  +62.7% Oil

From High to Low

+268.0% Gold
+172.1% Transports
+  98.7% Utilities 
+  62.7% Oil
+  54.1% Dow
+  53.9% 30 Year Treasury 
+  41.6% S&P 500
+  25.5% Nasdaq

It is easily seen that in the year 2000 the Nasdaq was horribly overvalued and gold was on the give away table, such lopsided returns 15 years later!

Also of interest the stodgy 30 year Treasury bond has outperformed the Dow(until just recently), S&P 500, and the Nasdaq since the year 2000.  The modern portfolio crowd back in the year 2000 would find this a very low probability outcome.  Value player's, due to extreme valuations, would have recognized this as the most likely outcome (close to a no-brainer!). 

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