Jim Paulsen - the TV Schill (Not John Paulsen the hedge fund manager) - is banging his sell gold - buy stocks drum - just as he's been doing the last 10 years. And he's not alone. This time he's sure he's right. His reasons: Gold is over-owned by "the masses" and sentiment is off the charts.
Let's look at these claims:
Of the entire universe of financial assets in the whole world, only between 0.2% to 0.8% (depending on whose estimates one believes) are currently represented by investments in gold and gold-related assets. That's just slightly above 'nothing'.
And to get to 0.2 percent, I'm sure you have to count in the broken earrings and bracelet that fell through the cracks when "the masses" carted their gold down to Cash-for-gold, so that they could get more dollars to trade for gas, fritos, pepsi, and lottery tickets.
As for sentiment, according to both Sentiment trader and Hulbert's gold is at a decade low, while stocks and Housing are near a decade high:
Paulsen, maybe the dumbest man on TV - (and that's really saying something as you have to compete with the likes of Snooki and "the Situation" from Jersey Shore) - also tries to value gold in stock terms, treasury terms, housing terms - and finding that gold is in a convincing 10 years bull market in all of these, the mentally challenged tv personality concludes that gold must be too expensive.
Of course, Picasso's have continued to rise in comparison to vintage Hot Wheels and Barbies over the last ten years too. Paulsen also advises on selling your Picasso to buy dolls and toy cars.
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