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Stocks and Bonds

Gary North

This section is for people who are still undecided between stocks and bonds, foreign and domestic.

The American stock market peaked in March of 2000. If we use to S&P 500 index, the peak was 1527. That was on March 24, 2000.

Since that time, price inflation has increased by over 20%. The index should be above 1850. But that does not count capital gains taxes. To sell for what you paid, the index should be at 2200.

Then there is the beloved story of the American stock market's supposed gain of 7% per year. That much-heralded fairy tale got blasted by the twenty-first century.

I received the following e-letter piece of information in a widely read free e-letter:

But our main focus will always be about stock market investing. Why? Because nothing has performed better than equities over the long haul. Not cash, not bonds, not real estate, not gold, not collectibles, nothing.

Anyone who believed this in 2000 and left his money in a no-load U.S. stock index fund -- the smart investors' strategy -- has lost money. He should have had his money in gold and silver, real estate, and bonds.

This old line about the profitability of American stocks has been dead wrong for almost eight years. Yet the perma-bulls keep promoting this story as if nothing had happened to refute the theory since March of 2000. They simply will not learn from experience. They will never change their story.

I suggest that you read this article: How to Short the Various U.S. Stock Markets It's available to members of this site.


Foreign stocks have done well. Will this continue?

Then there are bonds, which usually move up when stocks move down. What about corporate bonds? What about government bonds? Which maturities? Which governments?

What effect will Federal Reserve policy have on American stocks and bonds?

These and other topics are covered here.

China: The Biggest "Pump and Dump" in History
Gary North - June 29, 2015
So said the man who shorted it three weeks ago -- and got richer. keep reading

Spin and Stock Market Investing: The Lesson from Greece
Gary North - June 25, 2015
The stock market's investors' future rests on the greater spin theory. keep reading

Bill Gross on Bonds and Central Banks
Gary North - June 12, 2015
Will they cease inflating? keep reading

Do Gold and the U.S. Stock Market Move Inversely?
Gary North - June 12, 2015
Some things take two minutes to check. Spend two minutes. keep reading

Dow Up 236, T-Bonds Fall
Gary North - June 11, 2015
Something's gotta give. keep reading

The Federal Reserve's Make-Up Kit
Gary North - June 05, 2015
It's more lipstick for the economic pig. keep reading

How America's Corporate Managers Are Pocketing America's Future
Gary North - June 02, 2015
This has been going on for decades. It is now getting much worse. keep reading

The Stock Market and America's Shepherds
Gary North - May 28, 2015
Stock market investors are the best and the brightest. That is the problem. keep reading

The Next Market Crash
Gary North - May 13, 2015
The next crash will expose the futility of central bank solutions. keep reading

Bill Gross and David Stockman on the State of the Financial Markets
Gary North - May 13, 2015
"Crash or strangulation?" That is the question. keep reading

Treasury Debt in the Coming Credit Crunch
Gary North - May 09, 2015
The credit crunch is coming, says the multi-billionaire. He is correct. keep reading

The Two Causes of Negative Interest Rates
Gary North - May 01, 2015
We have now entered a stall-speed economy. The trick now is to get off the plane before it crashes. Parachutes, anyone? keep reading

The U.S. Treasury's Track Record
Gary North - April 17, 2015
What the Treasury is really selling. keep reading

Preparing for Boomer Despair
Gary North - March 27, 2015
When the next bubble pops, so will optimism. There is going to be a great reversal. keep reading

Buyers in a 15-Year Bear Market for Stocks
Gary North - March 12, 2015
The next generation has learned its lesson. Retirees will soon learn their lesson. keep reading

The Smartest of the Dot.Com Billionaire Says That This Tech Market Is Worse Than in 2000
Gary North - March 06, 2015
The guy who stuck at the Goldman Sachs says the market is going to stick it to today's lemmings. keep reading

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