Thursday, December 01, 2011

GOLD, EQUITIES OR CASH?


Over the period 1927-2011, $1.00 invested in equities grew 29 times greater than $1.00 invested in government bonds.

(However, equities massively underperformed bonds from late 1929 to mid-1932 and their cumulative return didn’t overtake bonds again until 1950. Stocks have also cumulatively underperformed bonds since 2000.)

(http://advisoranalyst.com/glablog/tag/stock-performance/#ixzz1f6IqeGBT)

Should you could keep your money in gold, or shares (equities) or US government bonds?

In early September 2011, gold was around $1,900 an ounce.

The high price was due to many investors thinking that inflation was going to soar.

At the very same time, the 'ten-year US Treasury bond' was yielding less than 2%.

The popularity of the US treasury bonds was due to many investors believing that we were going to get deflation.

(Finance: Two views of the future The Economist)

The gold price is now well below $1,900 an ounce. ($1,715 an ounce)

Investors have looked at Japan.

Japan has had many years of high debt, low interest rates, and deflation.

Shares tend to do best when inflation is low.

But, shares MAY be a better hedge against inflation than government bonds.

Investors in shares hope for a recovery by 2013.

American companies profit margins "on some measures were even higher in 2011 than they were before the credit crunch; the last time they were so high was in the 1960s."

"Companies have built up a cash cushion to protect themselves against recession." (Finance: Two views of the future The Economist)

~

5 comments:

Anonymous said...

http://news.yahoo.com/alleged-russian-spy-allowed-stay-uk-110921239.html

Conspiracy Determinating said...

As long as central conspiracies like the private FED banksters owning most assets worldwide are not even mentioned, articles like the one from the Economist (which they own) will be lies based on lies and mostly confusing and stealing our time.

"Nor is it clear that previous rounds of QE did much to help the real economy."
The whores are comfortable with it all just being a game of deception.

Everything is manipulated to the extent that we totally depend on the whims of the owners (Analysis only yields "The markets will reveal which is right").
Assassination via systematic food poisoning (GMO, Agrochemistry, poisoned packaging, soil depletion, cancer), Fukushimas, DU, Chemtrails, War of Terror drones, weather warfare and planned famines, wealth confiscations; 6 billion slaves (6,840,507,000) trapped by fear-based programming with lies and a pyramid of systematic and crude corruption permeating even the private lives, competing for the best seats.
Independent leaders are being systematically assassinated.

Obviously the owners think they are smug for replacing us with future clones. But there is a likelihood that they just like raping without any ambition for future generations. Do you know of one of their visions (promoted movies) where such future ruling clones are happy and free ? Is there a blueprint showing the increasing oppression to be transitory ?

Anonymous said...

Off-topic. Surprised no-one's mentioned this yet...

Arbitrary indefinite detention of Americans and foreigners domestically and abroad without trial or charge

Yes, the Yanks want to legalize disappearing anyone anywhere anytime.

The National Defense Authorization Bill 2012, sections 1031 and 1032.

The bill is sponsored by Zionist sock puppets Carl Levin and John McCain.

You may remember John McCain as the republican candidate who ran against wayang kulit Obama. McCain distinguished himself during the electoral campaign by kowtowing, begging bowl in hand, to Jacob Rothschild at Spencer House in violation of US political fundraising laws.

Even slithering NWO slave Dianne Feinstein seemed to baulk at this nazi-inspired bill.

Lawlessness in the guise of law. Hic et Ubique.

---
"Question: Who is Kleist? What does he do?"

Anonymous said...

Someone's read The Day Of The Jackal.

Very badly written book. Also got the impression chunks of it were removed ...and Forsyth was too lazy to rewrite it, smoothing it out again.

Been researching the book.

Found 'Lucien Brun', aka Maurice Lucien-Brun, owner of a holiday complex in the Ardeche Hills (?) north of Marseilles, town of Sanilac, complex (old farmhouses refurbished) called Les Conchis. He admits to being in London in '56-'57, but no more.

Certain L-B was a 'sleeper' inserted by the French SIS into mercenary activities to sus info and insert dis-info. But being a psychopath he got to much into it and caused a few problems, to be removed. Later inserted into Biafra but situation was impossible and he was retired. Now about 82 years-old, but still very active pysically, the region is renowned for it's rough country, hills, deep ravines, woodlands, a very popular hiking area, the ideal place for a woodsman like L-B to disappear if he needed.

I though I'd cracked it when I found him. But, like all else, I bit the bullet there. Again. You can't force people to talk.

CanSpeccy said...

The combination of high gold prices and low interest rates seem paradoxical, since low interest rates typically indicate low expectations of inflation, whereas high gold prices might be indicative of high expectations of inflation.

However, when low interest rates are avowedly maintained in the hope of creating inflation, market behavior becomes understandably weird.

Stocks seem to be cheap compared with a year ago. PEs are down (17.23 to 13.36 for the SandP 500, from 14.03 to 12.5 for the Dow with estimates of forward PE even lower).

But many Western economies are contracting, so future profits look uncertain, which may explain the downward trend in PEs.

The there's the continual push for war that could wipe out most wealth as during WW2. That's a reason for buying physical gold, to bury in the back yard where the authorities will not find and confiscate it.

But a back garden vegetable patch looks like a sound investment, whatever the future may hold.

 
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