Thursday, June 22, 2006

The death of paper?

Despite the recent collapse of gold prices, the Nasdaq Composite is still underperforming gold. Continued underformance of equities will be extremely troubling and may indicate a multi-decade shift of assets away from US equities.

Worst case scenario: parity between the price of gold (oz.) and the Nasdaq Composite. $1000/oz. + $compx = 1000? Scary thought.

 

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