How is the stock market performing? It all depends on how you measure. When measured in US dollars, the Dow currently trades approximately 28% below its all-time record high. However, when measured with that other world currency (gold), the picture is even more bleak. To help illustrate the point, today’s chart presents the Dow divided by the price of one ounce of gold. This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold. For example, it currently takes 8.5 ounces of gold to “buy the Dow.” This is considerably less that the 44.8 ounces back in the year 1999. When priced in gold, the US stock market has been in a severe bear market for the entire 21st century

Dennis Gartman: “Panic, confusion, margin calls and “risk management” are the marching orders of the day. We would like very much to suggest that there are other concerns driving the commodity markets, but that would be wrong. For the moment there is nothing else driving the market… or any capital market for that matter… than is the forex market. “

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