Wednesday, 4 August 2010

a bit of playful thinking;

ok just some left field thoughts from the Raven on things as crazy as the gold dow ratio...

just looking at spx vs $GLD back to 1975 some stats using the following ratios you get an SPX based on current gold prices;

min 154

25% 682

50% 1217

75% 2716

max 6505

average 1833

we currently stand at 45th percentile, so not extreme at all.

if we look at the price of gold, fixing the SPX and using the lowest SPX/GLD ratio from the last gold bubble, we see a SPX inflation adjusted price of $8,353. whooooah indeed.

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