In search of intrinsic value
100 - $SPX since 1980
The S&P is the benchmark I use to illustrate and buttress my argument.
105 - 30years US Treasury Bond since 1980
110 - $SPX, the 30yr US TBond and the US Dollar since 1980
120 - $SPX and gold since 1980
125 - Gold since 1980
126 - Gold bullion inflated by the purchasing power of the US$
130 - $SPX valued in terms of gold bullion
135 - The 30yr US Treasury Bond valued in terms of gold bullion
140 - $SPX valued in terms of $XAU the gold mining company share index
Oct 7/13 - This is the power of the Fed. By simultaneously giving trillions to the banks and keeping interest rates artificially low, it can induce corporate re-financing thus boosting the nominal value of the stock market. The direct ramification of this policy is the devastation of purchasing power thus abetting inequality.
141 - gold shares vs S&P monthly