Twenty years ago, on 19 October 1987, the stock market took a terrific drop… 22.6% as measured by the Dow Jones Industrial Average. But look at the chart of the DJIA since 1900 and see if you can find the crash. It's there, just a bit over 2 years before 1990… but it's a pretty small hiccough in the long bull market from 1980 to 1999.
I'm not too worried about one-day wonders (or horrors.) I'm worried about the steep drop in the value of dollar denominated assets of many types, including large industrial stocks, since 1999, and as the dollar continues to shrink in value, it's more important than ever to keep your eye on the ball, and keep your investments growing in gold value!
You can use a strategy that protects you, like trailing stops measured in gold. Or invest in stocks that are rising in a falling dollar environment – mainly resource stocks, value plays and well managed, fast growing small caps. Whatever your strategy, I can help with custom charts to keep you focused on the true gold value of your investment options.
Filed under home currency, monetary universe by