Let's revisit a favorite exercise of mine... viewing stocks in terms of real money... because the analysis may be pertinent to our near-term outlook. Over the past decade or so, equities have been mired in a vicious bear market. The extent of this bear may not be so apparent in nominal terms. After all, major indexes eclipsed their 2000 highs before the 2008 liquidation. However, in terms of gold, stocks have suffered a series of crashes, none of which have been recovered:
The fifth crash of this secular bear market appears to be underway. However, not wanting to admit their mistakes, the masses continue to wish stocks higher while ignoring the sector that can return their money. Somehow I suspect they will catch on right about the time the Dow and gold reach parity. At that point, I'll be happy to trade my gold for their equities.