"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

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Friday, March 11, 2011

Dow Jones / Gold Ratio

How is the Dow doing compared to Gold?

 A rising line indicates it is outperforming the metal. A falling line indicates that Gold is outperforming the Dow.

The first chart is a weekly chart of the ratio going back to 1979. The latter is a Daily providing a closer look at the last few years. Notice how gold was outperforming the Dow during the credit crisis eruption in the middle of 2008 but since the FEd began its Quantitative Easing policies, they have managed to keep the liquidity pumping into the stock market in order to levitate it. Even at that, the ratio has been pretty much flat although so far this year, Gold is slightly outperforming the Dow as a whole.


  1. I wish there was a gold denominated equivalent to the SPY...

  2. Wow, look at that massive head and shoulders on the Dow-Gold ratio chart. Thanks Dan


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