Fifty years ago, President Richard Nixon, signed Executive Order 11615 and with it sundered the last remaining links between the US dollar and gold. Half a century on and many of the lessons of that sorry episode have been sadly forgotten while central banks now hold themselves accountable to no standard save that of their own swelling hubris. Can we really avoid the evils of inflation in such a world?
If we compare like with like, we find that the semi-mythical ‘equity risk premium’ may not be quite the yardstick it’s made out to be. In fact, the right sort of bonds have proven every bit as rewarding as stock, over the years and it’s cheap to bet they might do so again
17-07-18 Relatives Just how out of line is the US stock market v-a-v its peers? Versus bonds? And what about commodities? Can things run on as they are or is it time to start thinking about a major re-allocation?Please click the link (in bold) to launch the video