Gold Versus Dow Ratio: Very Different Pictures Short-Term vs Long Term.

The DOW/Gold ratio shows two very different pictures in the short term versus the long term:

Short term 6 months:

Short term either the Dow is overbought or gold is low (!), or both.

Long term (80 years):

In the long term, the Dow is too low, or gold is too high, or both.

So, next time somebody tells you that the stock market or gold are oversold or overbought, you should think about what it really means for your investment timeframe.