Jubilee Prosperity

Let us quickly dispel that notion by showing that the dollar divided by gold has essentially gone sideways since March 2008, so the Fed is doing a good job in that respect. As they say, the central bankers are more concerned with deflation than inflation.

http://stockcharts.com/charts/gallery.html?s=%24USD%3A%24GOLD

It is only the casual bystander concerned about gold and silver, catching headlines that India and China bought gold above $1000 and $1100. Meanwhile the IMF made a considerable profit selling it. Unless we live in India or China like Jim Rogers, maybe it is better to pay attention to what is going on in the West. By the way, what is going on in the East is credit tightening to prevent monetary inflation, which is not a problem in the West if we look at the money charts again.

http://www.shadowstats.com/alternate_data/inflation-charts

Since human nature did not change as long as we have records, it is quite possible a few actually bought Mr Buffett’s advice back in October 2008, when the Dow closed at 8852. A month later the Dow went lower. Almost five months later was Monday 9 March 2009 with a Dow low of 6449.95.

While Mr Buffett did not say he could forecast a lasting higher market any sooner than five years, it is highly likely that most quickly forgot what he said.

The modern emphasis on conditioned attention deficit disorder makes us easier for Madison Avenue, Wall Street and Washington DC to control.

At the risk of being factual, in the first week of March we posted Buys on our Charts with Hearts public portfolio (no longer available on Stockcharts.com) and this website http://www.jubileeprosperity.com/

We enjoyed many good returns far exceeding the 66% surge in the Dow from March 2009 to January 2010.

These included gold and silver, up 80% and 131% respectively.

Our gold and silver stock ideas did better.

http://stockcharts.com/charts/gallery.html?s=$gold

http://stockcharts.com/charts/gallery.html?s=$silver

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This entry was posted on Sunday, February 28th, 2010 at 5:38 pm and is filed under Capital Preservation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.