With the Dow Jones closing above 16,600 for the first time ever last week, investors are overjoyed by the signal this sends. Apparently all is well in the economy, and those pesky threats of unemployment and sluggish income growth are figments of your imagination.
Over at Mises Canada today, my daily article shows how well the stock market has been performing in something other than money. It turns out its unsettling. Since 2000, the stock market has just barely maintained its value in inflation-adjusted terms, this despite being over 5000 points higher today.
In terms of gold the collapse is even more pronounced. It takes nearly 75% fewer gold ounces to buy a “unit” of the Dow today than it did 14 years ago!
That´s not exactly what I think stock market cheerleaders have in mind when they talk about “investing for the long run.”
Read more here.