What’s Going on With Gold? [Of Dollars and Data] – “As you can see, gold has outperformed the S&P 500 (with dividends) by nearly 2x since 2000. After seeing something like this it’s easy to question why you would ever own stocks. If a glittering rock can outperform productive businesses, what’s the point of owning stocks at all?
While this comparison is technically accurate, it’s also quite misleading. Not only were U.S. stocks in the midst of their largest bubble ever (during the DotCom boom), but gold was still down over 50% from its highs in the late 1970s. By starting in the year 2000, you are comparing U.S. stocks at their most expensive to gold near its cheapest. This is the Mike Tyson vs. Jake Paul comparison of investing. One was out of their prime and the other wasn’t.”