Opinion: The Dow/Gold ratio has reached a significant turning point; the previous three times all indicated that "gold outperformed US stocks" within a few years.
BlockBeats News, December 26, Christopher Aaron, Chief Analyst and Founder of iGold Advisor, stated that the fourth major turning point of the Dow/Gold Ratio has arrived. This signal indicates that gold will experience several years of sustained growth, while holders of industrial stocks such as the Dow Jones and S&P 500 may face years of losses.
Note: The Dow/Gold Ratio refers to the number of ounces of gold required to purchase one share of each of the 30 Dow Jones component stocks. According to the average data from the previous three key turning points in history (1930–1933, 1968–1980, 2002–2011), the Dow is expected to fall by 90.5% relative to gold over a period of 9.3 years.
Aaron also pointed out that this fourth turning point of the Dow/Gold Ratio may become the most critical trend break in the historical movement between the two, and the decline of the Dow relative to gold may exceed the average of the previous three cycles. (Golden Ten Data)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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