• 525 days Will The ECB Continue To Hike Rates?
  • 526 days Forbes: Aramco Remains Largest Company In The Middle East
  • 527 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 927 days Could Crypto Overtake Traditional Investment?
  • 932 days Americans Still Quitting Jobs At Record Pace
  • 934 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 937 days Is The Dollar Too Strong?
  • 937 days Big Tech Disappoints Investors on Earnings Calls
  • 938 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 940 days China Is Quietly Trying To Distance Itself From Russia
  • 940 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 944 days Crypto Investors Won Big In 2021
  • 944 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 945 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 947 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 948 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 951 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 952 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 952 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 954 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Yin and Yang, Dow Jones and Gold

As human beings we try to intellectualize and get to the bottom of things. We seek to find meaning in everything. There must be a reason for what is happening at any given time.

Take for example the Dow's stellar performance and gold's lousy performance even as monetary policy has gone reckless on a global scale. This goes against everything that humans who deal with the financial markets think they know. But what if we are just getting back into symmetry?

$INDU Down Jones Industrial Average INDX
Larger Image

Money flew out of global stock markets in 2011 and it just knee-jerked into gold in a dangerous way that distorted the investment profile of the barbarous relic that is nothing more than an anchor to monetary value. What has happened since 2011 is fixing this distortion. What is so hard to understand about this?

The Dow, now negatively correlated to gold, is currently becoming distorted with a high proportion of dumb money aggregates while gold is left for dead by the dumb money (public, momentum speculators, etc.).

The inflation being promoted by our Dear (Monetary) Leader (DML) here in the US and similar DML's in Europe and Japan is coming into the system. Inflation is always destructive in some way, whether by gradual and insidious rising prices or by inflated bubbles that pop and resolve into deflationary fallout.

Contrary to the new analytical cult I have seen cropping up out there about a grand new bull era in the USA, might we not consider that it is just US stocks' turn to suck in the bid? Gold was still working off the excess and thus was not a viable play in the global casino. It was not yet ready and there sat the Dow, at the November lows in response to the anticipated Fiscal Cliff drama, just waiting for a knee jerk relief bid.

It got it and things are coming into symmetry once again. Gold is much healthier than it was in 2011 and the Dow is much more risky than it was in November.

NFTRH has been in alignment with the rhythms and symmetry in financial markets since its launch right into the teeth of the 2008 global asset market crash. Good times . Check it out on a monthly basis (cancel any time if it is not for you) and you just might find an effective vehicle for managing the market's interim swings with risk management and a capitalist's greed, each only as appropriate.

 

Back to homepage

Leave a comment

Leave a comment