Market performance for June.
Weekly Market Update by PLP Advisors Markets last week were pretty calm. Stocks and metals both rose ever so slightly, which left the Dow to Gold ratio virtually unchanged. If you’re a new reader, the Dow to Gold ratio takes the value of the Dow in US Dollars and divides it by the price of gold per ounce in US Dollars. Last week with both stocks and metals markets moving up marginally the Dow to Gold ratio barely moved edging down from 17.03 to 17.01. If you’ve been a long-term reader of “Portfolio Watch” you know that we are predicting a large move downward for the Dow to Gold ratio. We are ultimately expecting that this ratio will fall from current levels to around 1, which means the Dow and gold will be at parity. In order for that to occur, stocks will have to fall significantly or gold will have to rise significantly, or both. Stocks falling and gold rising would likely be the outcome if there was a deflationary outcome to the current private sector