Tbills and Gold
Surprise and Disaster
TBILLS SYSTEM vs 3 Indexes, DJIA, NDX, and SP500
37.7 years August 30,1971-May 11, 2009
Cumulative % Change--Hypothetical--Weekly
See Comments below
I have added a tick on the chart, the short horizontal magenta marker, which indicates the relative closing value of inflation compared with the investment alternatives. Thus, the Consumer Price Index (CPI) shows to cost of living rose from 100 to 523% over the period covered.
DJIA and SP500 easily outstrip CPI by wide margins, 906%, 877%, respectively, not to mention the superb Tbills system result itself, 4,020%, eight times better than inflation. As a matter of fact, Tbills themselves (not shown) beat inflation by 628% to 523%. With results like those, who needs gold?
It has always baffled me why people in the portfolio-management business seem to universally recommend some portion of every portfolio--usually 5%, sometimes 10%--to be invested in gold.
Let us see if there is an answer to that. Next.
This is page 2.
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