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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.

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

The Stock Market and Political Legitimacy
Gary North - July 29, 2015
They are Siamese twins. keep reading

My Radical Solution to Reduce Executives' Compensation
Gary North - July 17, 2015
Inquiring people want to know. keep reading

European Investors Ignore the IMF
Gary North - July 17, 2015
Who's right? Why? keep reading

Investing for Dummies, Written by People Who Want to Manage Your Money
Gary North - July 10, 2015
The dummies believe this stuff. keep reading

Stocks Rise in the Face of a European Crisis
Gary North - July 09, 2015
The economic insanity of American investors is colossal. keep reading

China's Rigged Stock Market
Gary North - July 08, 2015
There is nothing free about this market. keep reading

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

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