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Dow Gold Ratio Log Chart Resistance and Support levels for the DOW to Gold Ratio |
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April 17, 2013: On December 3, 2012 I published a bullish case for stocks relative to gold here.
Of course, there are many ways to connect stars in the sky to see figures, so I added lines that make a bullish case for stocks relative to gold.Here is my latest Dow:Gold chart on a log scale. Note it clearly shows the bull market trading channel for the ratio between 1980 and 1999 then the bear market channel since the last DOW peak in 1999. Currently, the DOW:Gold ratio is at the upper end of this bear market channel. Will the ratio break higher or is it the start for a new leg down? Make sure to check out DOW to Gold Ratio - Linear Scale. Newsletter: Subscribe to Kirk Lindstrom's Investment Letter to learn what I recommend owning going forward
April 2013 Article: These High-Yielding DOW Stocks Should Do Well After Today's Poor Jobs Report |
DOW to Gold Ratio - Linear Scale
Here is the DOW:Gold formula: The Dow-Gold Ratio is a
measure of inflation and stock market sentiment. It shows how many
ounces of gold it takes to buy the 30-stock Dow Jones Industrial
Average.
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Note: It is possible that with
centrals banks around the globe now printing money to avoid deflation,
BOTH gold and stocks could go higher. My recommendations on how to
profit are covered in my monthly investment letter.
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Disclaimer: The information contained in this web site is not intended to constitute financial advice, and is not a recommendation or solicitation to buy, sell or hold any security. This blog is strictly informational and educational and is not to be construed as any kind of financial advice, investment advice or legal advice. Copyright © 2013 Kirk Lindstrom. Note: "CORE & Explore®" was coined by and is a registered trademark of Charles Schwab & Co., Inc. |