Equities In Real Money

By Tim Knight of Slope of Hope
Sunday, September 17, 2017 4:59 PM EDT

Using good old SlopeCharts, I thought I’d do a little experiment. As you know, stocks are at lifetime highs, but in nominal terms. I wondered what things look like in terms of “real” money (as measured by GLD), so I entered the symbol (SPY/GLD) and got this result:

slopechart_(SPY-GLD)

What jumped out me is that, in these terms, we are actually lower than we were in the pre-financial crisis peak. In addition, the ultimate low for the market wasn’t the famous March 2009 bottom, but instead took place a couple of years later (which makes sense, if you look at bank and financial stocks, which plunged until then). Food for thought.

Disclaimer: This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult ...

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