by Tom Dyson
The financial world is either risk-on or risk-off… It’s a world that is either expanding with win-win deals or contracting… civilizing… or decivilizing.
It is either making progress… or it has gotten too far ahead of itself and is backtracking.
– Bill Bonner
The most important trend in finance is the decline in the Dow-to-Gold ratio.
The Dow-to-Gold ratio tracks the Dow Jones stocks as priced in gold. It tells us the best times to buy gold, and the best time to buy stocks.
It peaked in 1999 at 41. Then, it began what I call its “long walk down the mountain” to where it always ends up. That is, below 5.
Let’s call this the “primary trend.”