SAN ANTONIO (U.S. GLOBAL INVESTORS) - Happy holidays wishes to all, with a special season’s greetings to the permanent gold skeptics.
The decade that ends Thursday is on track to be the worst in recorded history for the U.S. stock market – worse than all of the many boom-and-bust cycles of the 19th century, worse than the Great Depression-era 1930s, worse than the recession-plagued 1970s.
The S&P 500 opened the decade at 1,469.25 on January 3, 2000. When the market closed on Christmas Eve, the S&P 500 stood at 1,125.46 – with four trading days left in the decade, the index’s annual performance over that span is negative 2.6 percent. The Dow Jones Industrials has lost about 1 percent per year over the same period, and the Nasdaq Composite is down a whopping 5.9 percent annually. When adjusted for inflation, the 10-year returns for these indices are even lower.
It’s always seems appealing to chase the hot asset class, but it defies the very simple logic of buying low and selling high. This is probably the very worse time to buy gold. It’s all media hype.