GOLD 0.51% $1,391.7 gold futures

Tr1ptych,I have no idea what the bottom of the DOW/gold ratio...

  1. 3,367 Posts.
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    Tr1ptych,

    I have no idea what the bottom of the DOW/gold ratio will be. About 12 years ago I first saw this chart and bought gold investments as the ratio reached new highs. I lost most of my money as it peaked much higher than I expected.

    I think there will be a 3-5 year window to buy common stocks, namely financials very cheaply, just as there was back then in the gold arena. I think it will be fairly evident when the ratio has bottomed. PE ratios will be in single digits etc.

    In the meantime the ratio tells me gold is a good place to be. I'm focussing on finding companies that will do well in the next 2-3 years at current prices. If gold doubles again, then even better.

    Rowingboat
 
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