Total Pageviews

Friday, February 1, 2013

THE BIG LIE: The Dow has outperformed gold

Here's one you hear all the time:

Over the last 115 years the Dow has substantially out performed gold.

The truth: over the last 115 years, all but 2 Dow companies extant in 1900 have gone BANKRUPT or been bought out.  Of the 8 the went bankrupt that means their price has gone to ZERO.  The 4 bought out companies are worth something now as tiny components of conglomerates.  You figure out their value.  GE still exists.

During the same period gold has moved from $20 and ounce to $1650 an ounce.

Which has performed better?

Dow Components in 1900:

No comments:

Post a Comment