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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (41798)	8/9/2009 4:18:20 PM
From: Real Man	Read Replies (1) \| Respond to of 207795

Precisely. The ratio is in the low range historically, so it indicates we are 9 years through the secular bear (dollar bear excluded), rather than just 2 years as some are claiming. However, be careful, since in 1980-s, the previous secular bear, the ratio actually made a new low, below 2, set in 1932. In other words, this is more like 1975 than 1982. Gold may decline as the economy recovers, but it made a 28 year high in 2008, breaking out of 28 year old bear market. It is highly unlikely now gold won't see 3k-5k in 3-5 years ahead. Also note that the market went to almost new highs in 1975, erasing 50% 1973-74 bear market, while gold performed poorly. However, in 76-80 gold went up 7-fold as inflation picked up with the economy.