Here’s some important news no one else is telling you: The Dow is now trading at the equivalent of the 2,500 level!
Yes, that’s right. In terms of “honest” money — gold — the Dow has already lost 77% of its value!
How can that be? It’s because the world no longer uses “honest” money and instead economies — and asset prices — float on variable currency exchange rates with nothing but “a promise to pay” backing them.
So to really understand what’s happening to values — the nominal prices that you see in the markets whether they be for stocks, bonds or commodities — you must look at them in terms of the one asset that always holds its purchasing power: Gold.
I explain this concept in detail in my most recent Money and Markets column and I strongly recommend you take a look. Because once you understand why assets need to be adjusted in gold terms to truly know how they are performing, you then will know how to position your portfolio to profit in the months and years ahead.
Savvy investors like Warren Buffet, Jimmy Rogers, Mark Mobius, and Barton Biggs understand it. And so should you!
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Larry, How would this work if I hold a basket of assorted currencies. Would it be best to stay in the dollar or diversified in currencies such as the real,yuan,aussie,krone,rupee,yen and new zealand?