On the day gold hits an all time high and with 3 months to go before the Fed ends its latest attempt to help the economy, let’s look at the rise in the asset class the Fed admits they are trying to goose, stocks, and compare with the two asset classes they say they have nothing to do with, commodities and currencies. Since Bernanke gave his Jackson Hole speech, the S&P 500 is up 25% but in gold, commodity and other currency terms, the gains look not as good. In gold terms, stocks are up just 6.6%, in oil they are down 13.6%, in CRB terms they are down 8%, in Euro’s they are up 11.8%, in CAD up by 15%, in AUD up by 8.5%, in CHF up by 10.5% and in yen up by 19.5%. I make this analysis to point out the nominal world the Fed is trying to jump start to deal with too much leverage in our economy where in reality, REAL gains are the only thing that helps a country’s standard of living.
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