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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.

Why Bad News for the Economy is Good News for U.S. Stocks
Gary North - October 06, 2015
Low job formation means a stock market increase. Why? keep reading

The Economic Functions of the Stock Market
Gary North - September 25, 2015
Do not be misled on this. There is a lot of bad information out there. keep reading

China's Economic Gun: At Whom Is It Pointed?
Gary North - September 11, 2015
This is the issue of economic cause and effect. The gun is loaded. The hammer is cocked. Who will pull the trigger? keep reading

Will Treasury Bonds Rates Rise or Fall in the Next Recession?
Gary North - September 08, 2015
The debate is dividing the hard-money camp. keep reading

The Federal Reserve's September PR Announcement
Gary North - September 04, 2015
Reading the FED's tea leaves is a cottage industry. keep reading

China's Stock Market: How Relevant?
Gary North - August 28, 2015
Looks are deceiving. keep reading

Dueling Algorithms: The Dow in the Final Five Minutes (August 25, 2015)
Gary North - August 26, 2015
I watched the wild ride of the DJIA. Incredible. keep reading

China's Stock Market Plummets Again
Gary North - August 25, 2015
I have expected this. Here's why it's happening. keep reading

Stock Market Bulls: Now Is the Time to Buy!
Gary North - August 24, 2015
Their faith never wanes. Here is today's example. keep reading

World's Stock Markets Tank on China's Devaluation
Gary North - August 13, 2015
China is moving toward recession. The central bank is in panic mode. keep reading

The Crash of 2016
Gary North - August 10, 2015
It's coming, says the money manager of a $118 billion fund. keep reading

Smart Money Is Bailing
Gary North - August 07, 2015
It's not clear who is buying. Very smart money? Dumb money? keep reading

The S&P 500 Since 1966
Gary North - August 07, 2015
The Federal Reserve has created an enormous illusion. Millions of middle-class Americans have bought into it. So have the rich. keep reading

Blame the Federal Reserve, Not the CPI
Gary North - July 31, 2015
The FED is bad, all on its own. keep reading

From Jargon to Babble: The Temptation of "Inside Information"
Gary North - July 31, 2015
If you don't understand it, don't worry about it. It probably is not worth understanding. keep reading

Stock Market Gains: The Super Half-Dozen
Gary North - July 29, 2015
The air is thin at the top of the pyramid. keep reading

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