Dow Versus Gold, the underperformance may continue

2020년 7월 29일

Dow peaked in September 2018 versus Gold. Therefore, it seems like Dow has ended its 7 year rally versus Gold from 2011 to 2018.

Underperformance doesn't mean Dow is going to crash, it just means Capital is MOVING elsewhere or BROADENING. Even Nasdaq versus Gold has not yet break upon its 2018 high.

This is DIFFERENT than the bull market that Dow Jones had from 1980 to 2000 and when it Quadrapled versus Gold from 1995 to 2000.

Stop making comparisons to what happened in the past. People who kept calling for stock market to crash and for only gold to go up don't understand the complexities in financial market and only thinking linearly. Anyways, I don't really care about Gold Bugs as I don't worship any asset class. I am glad that I have outsource most of my thinking to algoritm.

So, Dow Jones may consolidate and may stagnant at this level for a while, in the mean time, Gold may continue to move higher as its already broke its all time high, unlike Dow Jones.

In this era of infinite money printing, there is always chances that asset classes can continue to appreciate further. Plus, its not all good in the market, some companies are already going the opposite direction, i.e to zero while some companies are going to vertical. It depends on how individual stocks perform.

Dow is just a sample of capital flow. Also interesting to see Dow performance versus other stock market indices around the world.

A proper analysis is when you take into account and consider the relationships between ALL asset classes globally, anything below that means that you don't use enough data for your analysis and put you behind, which most trader use. Most traders look at only one chart and make conclusion from that. Nope, you need to look at thousands and thousands of charts in MULTIPLE time frame in order to BEGIN your analysis.

Please, don't message me and reach out to me. I don't have time. I am NOT here to make friend or sell anything. Sorry.

Regards.