Wednesday, October 24, 2012

Two Intersecting Bubbles: Future & Present - Gold & Bonds

The following easy to understand video walks investors, using pictures and narration, through two of my personal favorite topics in finance: market psychology and history. It then takes those ideas and extrapolates them forward to our world today showing where we are in two key bubbles: bonds and gold.

The author feels that one of those asset classes is at the final stages of the mania period, meaning it is very close to the point of free fall in prices, and the other asset is very close to the beginning of its mania stage; the period during a bull market where the greatest gains are experienced in the shortest amount of time.

While I will not spoil the presentation, I'll give a hint to long time readers of this site: I agree with his analysis completely.

If you are someone that owns a significant portion of your retirement funds in bonds (perhaps through your 401k) and owns a very small, or 0%, of your retirement funds in gold - the following is a must watch.

 

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