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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.

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

Stocks, Bonds, and the Carry Trade: A Dialogue
Gary North - February 23, 2015
There is a lot of confusion out there. Maybe I can clear up some of it. keep reading

Treasury Bond Prices Have Soared. There Is a Good Reason.
Gary North - February 21, 2015
The doom-sayers were wrong . . . again. keep reading

What Dow Theorists Say About the US Stock Market
Gary North - February 04, 2015
They are divided, but not evenly. keep reading

Warren Buffett's Investment for Dummies
Gary North - January 24, 2015
It helps him get richer. My advice: ignore him. keep reading

How Long Can the Illusion of Stock Market Profits Go On?
Gary North - January 20, 2015
For a lot longer. keep reading

If I Were Ready to Invest in Stocks, This Is What I Would Use to Build My Portfolio
Gary North - January 05, 2015
This technology offers a way to invest rationally . . . if stocks are rational. keep reading

Roubini on Our Bubble Economy
Gary North - December 06, 2014
It's going to pop. He date it. keep reading

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