alt Hacker NewsThat chart is also really weird. With log scale turned off and expanded to all time...
https://www.macrotrends.net/1437/sp500-to-gold-ratio-chart
Makes it look like the US peaked at Sep 2000 and has been downhill ever since. Doesn't track at all with GDP which has almost doubled since 2000. I.e. it doesn't track with growth, but does track with dollar index somewhat, which makes sense because it's tracking a dollar value intermediate when considering "how much gold it takes to buy S&P 500", which means it really ends up tracking something else entirely.
> Compared to real money (Gold) the S&P500 is down over the past 10 years. [4]
Isn't this the real chart to look at for that? Completely different story when you select max on the timeline.
https://www.perplexity.ai/finance/%5EGSPC?comparing=GCUSD
Personally I am about $10M USD poorer for listening to people on the internet. I wish people would not spread falsities about finance that can actually ruin lives. (Albeit to be fair, the trend is towards conservative advice...my life was uniquely affected in terms of limiting upside, so I am at least grateful that most online posts work very hard to limit downside.)
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S&P gets you dividends though, so the interpretation of that chart is tricky. Holding the S&P, you can still do better than holding gold, even when the GOLD/S&P ratio is positive.
> Isn't this the real chart to look at for that?
No, the perplexity chart is actually a really bad one to look at. It tracks a derivative of gold from 1975 onwards from which the S&P already accrued over 350% in returns. They also started the gold derivative off at a price of $178 while using the initial price of $17.57 to calculate S&P returns.
> Personally I am about $10M USD poorer for listening to people on the internet. I wish people would not spread falsities about finance that can actually ruin lives.
Ideally no one would blindly follow advice they don't understand or can't accept into their own mental model.