Nasdaq Versus Gold - The Truth Hurts for Gold Bugs
I believe Gold to be the only sound money ever existed. But I have learn from my life experiences to remove my bias from my investment.
I have decided that I can't use my bias and emotions when investing, I have to look at facts and follow the facts.
And that's the reasons I have decided to have only small amount of Gold in my portfolio and overweight on equity and technology stocks.
It is easy to fall in love with any particular asset, let it be Gold, Real Estate, Bitcoin, Stocks, etc. But the market doesn't care about your feelings and your emotions.
The market will do WHATEVER it want to do.
And if someone really cares about PRESERVING their wealth, then, they ought to follow the market NOT their emotions.
This chart alone is enough to tell us a story. A story whereby Gold is just as CYCLICAL as everything else and it is NEVER A GOOD IDEA to only hold gold.
From 1980 to 2000, Nasdaq and technology stocks VASTLY outperform everything else, something that people like Peter Schiff never tells to his audience.
And yes, after Dot Com crash and bubble, Nasdaq takes a break while we had a commodity boom from 2000 to 2012 where Gold did well. But that's it. Gold did well due to commodity boom and because equities is taking break after major expansion during 80's and 90's. Nothing more.
And then, in 2013, that starts the beginning of new bull market in Nasdaq and equities. Coinciding with the rise of cloud computing and artificial intelligence.
When market moves, it moves with momentum and when it moves with momentum, it will take a lot of energy to make it stop.
We are in the 7th year of this bull market, one of the most hated bull market in US equities whereby every new all time high is being yelled as the major top and a 90% crash will come ensue.
But the data is showing otherwise. 7 years is too short for a bull market. Especially when you mix in the Industrial Revolution 4.0 into the mix.
We are yet to fully see the benefits and potential of IR 4.0. That's why semis continue to climb the wall of worry, because it keeps growing and growing and growing.
And most people are underestimating the potential growth from all of these industries and sectors, missing out on Apple on the smartphone boom, Amazon on the ecommerce boom, Microsoft on the cloud boom and so forth.
People will keep missing on these stocks until eventually majority realize that this is real, they will bought into peak and at a major top, just like 2000.
We are nowhere near the level of euphoria like 2000. So the best things is to remain invested and to remain long on tech equities.
Gold will rise as we enter into inflationary phase but Gold will just be that small position in my portfolio, nothing more, until we see the bottom of commodity and the beginning of a commodity bull market, which by that time, capital will flow mostly into commodity.
Market always move in cycle. Stop falling in love with any particular assets.
I don't care about stocks, stocks will eventually peak and by that time, I will get out, but now is not the time.
I have decided that I can't use my bias and emotions when investing, I have to look at facts and follow the facts.
And that's the reasons I have decided to have only small amount of Gold in my portfolio and overweight on equity and technology stocks.
It is easy to fall in love with any particular asset, let it be Gold, Real Estate, Bitcoin, Stocks, etc. But the market doesn't care about your feelings and your emotions.
The market will do WHATEVER it want to do.
And if someone really cares about PRESERVING their wealth, then, they ought to follow the market NOT their emotions.
This chart alone is enough to tell us a story. A story whereby Gold is just as CYCLICAL as everything else and it is NEVER A GOOD IDEA to only hold gold.
From 1980 to 2000, Nasdaq and technology stocks VASTLY outperform everything else, something that people like Peter Schiff never tells to his audience.
And yes, after Dot Com crash and bubble, Nasdaq takes a break while we had a commodity boom from 2000 to 2012 where Gold did well. But that's it. Gold did well due to commodity boom and because equities is taking break after major expansion during 80's and 90's. Nothing more.
And then, in 2013, that starts the beginning of new bull market in Nasdaq and equities. Coinciding with the rise of cloud computing and artificial intelligence.
When market moves, it moves with momentum and when it moves with momentum, it will take a lot of energy to make it stop.
We are in the 7th year of this bull market, one of the most hated bull market in US equities whereby every new all time high is being yelled as the major top and a 90% crash will come ensue.
But the data is showing otherwise. 7 years is too short for a bull market. Especially when you mix in the Industrial Revolution 4.0 into the mix.
We are yet to fully see the benefits and potential of IR 4.0. That's why semis continue to climb the wall of worry, because it keeps growing and growing and growing.
And most people are underestimating the potential growth from all of these industries and sectors, missing out on Apple on the smartphone boom, Amazon on the ecommerce boom, Microsoft on the cloud boom and so forth.
People will keep missing on these stocks until eventually majority realize that this is real, they will bought into peak and at a major top, just like 2000.
We are nowhere near the level of euphoria like 2000. So the best things is to remain invested and to remain long on tech equities.
Gold will rise as we enter into inflationary phase but Gold will just be that small position in my portfolio, nothing more, until we see the bottom of commodity and the beginning of a commodity bull market, which by that time, capital will flow mostly into commodity.
Market always move in cycle. Stop falling in love with any particular assets.
I don't care about stocks, stocks will eventually peak and by that time, I will get out, but now is not the time.
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