And you're so far away from me
And where are you when the sun goes down
You're so far away from me
--Dire Straits
Taken from this piece, below is a nice little graph demonstrating that domestic equity markets remain closer to where bear markets begin rather than end.
Sage Richard Russell has often noted that secular bear markets end at compelling valuations. He has cited trailing PE ratios of 4-8 for the DJI.
We are far from that sort of 'value range' currently.
Also consistent with John Hussman's work suggesting that US stocks are in aggregate at levels more commonly associated with market tops.
position in SPX
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
1 comment:
As gold works its way higher, and as central bank inflation continues, the 'great unwashed public' will become increasingly more concerned with protecting their purchasing power and protecting what wealth they still possess. Thus fear of loss of wealth and purchasing power will continue to power the great bull market in real money-gold.
~Richard Russell
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