Terry, Re: Hibernation
At the end of December, 1989, the S&P was at 353.49, and at the end of December, 1994, it was at 459.27. Thus, for all the exposure to the equity markets, investors realized a dramatic investment return at a compounded rate of about 7%. Of course, this assumes that they were not invested in the average mutual fund.
For 1993 and 1994, it was even a more dismal investment return of less than 5% (as a total for the two years). Let's see, 1994, wasn't that the last year Mr. G raised rates three times?
Sorry, I cannot join you on the gold bug train. That monthly chart does not provide any hope. However, I do look forward to the next chapter of your book.
I will put forth the (undoubtedly) controversial hypothesis that the bull market since 1995 died in August, 1998. We have just been living off the parabolic fumes of Mr. G's interesting intervention last October. Some of us (including myself), have just been a little slow to realize it.
Berney |
