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Jeremy Mortis's avatar

I look at ratios for investing.

You need to look back further than the last 40 years to see the big picture.

Gold dramatically outperforms the S&P 500 line in the early 1970s and 2000 to 2011.

Silver usually follows at outperforms gold.

Even though gold is at an all-time high, it's still relatively low to the S&P 500. Silver is at a historical low relative to the S&P 500.

Commodities as well.

I'm long the S&P 500, but I do it differently.

I buy gold, silver, and commodities when they're undervalued relative to the S&O 500, When they're expensive relative to the S&P 500, I sell them and buy the S&P 500.

After each cycle, I end up with several times more stocks for the same amount of money,

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Christos V (Simply Finance)'s avatar

Great thoughts. There are so many permabears spitting doom and gloom and have been doing so for the last 1-3-5-10 years. These folks have already lost, and listening to them will lose you more money than it makes you.

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