Saturday, November 29, 2014

Bonds still beat stocks over the last 15 years

"King Kong" 1933
Your average annual nominal return from the S&P500 with dividends fully reinvested comes to 4.61% from October 1999 through October 2014, per Ironman.

Your average annual nominal return from the Vanguard Intermediate Term Bond Index Fund (VBIIX) for the fifteen years to 11/28/14 has been 6.48%, per Morningstar.

That's a 40% better rate of return from bonds than stocks on average.

"Hey, what's this show about, anyway?
"I don't know — they say it's some big gorilla.
"Oh, geez — ain't we got enough of them in New York?"

Friday, November 28, 2014

Gold/Oil ratio vaults to 17.77

Gold just cannot fall fast enough to keep up with the decline in oil prices. As a consequence, oil remains the better investment relative to gold, but you'd be crazy to buy either in this environment, in my arrogant opinion. You might as well try to catch a falling knife, or two of them.

Oil is plunging on increased supply in tandem with flagging demand, which has been flat to barely rising in the US. Gold has been suffering price declines as the dollar ends trade close to its 52-week high of 88.44 at 88.22.

Hey Obama you dumbass: Everyone born in America is a native American!