Long-Term ratios
Comment of the Day

April 24 2020

Commentary by Eoin Treacy

Long-Term ratios

Eoin Treacy's view

I have been ruminating on the interrelationships between markets over the last couple of months and that has been a significant topic of conversation in the Big Picture Friday Audios. There are changes which have taken place over the last few months that need to be viewed in the context of generational long trends because I believe they give us some perspective on what we can expect from markets over the next decade.

The Dow/Gold ratio has been a reliable barometer of the interplay between the performance of stock markets versus commodities for more than a century. Each higher high for stocks has been a factor of the reduced purchasing power of paper money coupled with improving productivity over the long-term. There were also between 35 and 37 year between the peaks with the last being in early 2000.

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