October 2018 - Bubbles and Bottoms for Commodities -

Commodities will outperform stocks over the next decade. I don`t make many specific predictions, but this one is so obvious to me that I would not “bet” on anything else. I`ve shown many charts that depict a clear bottom when it comes to the value of commodities against the valuation of the S&P 500 in Dollar terms. This following chart shows the valuation of the Dow Jones index in Gold terms, which creates an interesting perspective because it eliminates the effects of inflation.
Over the past 100 years, the average level was 13 shares of the Dow Jones versus 1 ounce of gold. Every time the ratio hit a level between 15 and 20, a recession was around the corner (visualized by the pink vertical bars).

"Bottoms in the investment world don't end with four-year lows; 
they end with 10- or 15-year lows."

- Jim Rogers - 

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