A historically-telling metric that almost nobody is discussing at the moment is the Dow-to-Gold Ratio. This is simply a ratio that takes the Dow Jones index figure and divides that number by the current spot price of gold. Currently, this ratio is at 16, and using history, we know that this number is on the high side and will likely fall in the near future. On the surface, this ratio could be used to decide whether or not stocks are under/over-valued, or whether or not gold is under/over-valued.
But as you will find out, this metric can be used for so much more, including the ability to see where the money is really flowing in our economy and how to balance your portfolio by applying it appropriately. Nicholas Green, of FMTAdvisory.com, who is a fiduciary advisor, was just interviewed on our show, and the insight he shares regarding this topic is eye-opening.
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