Greyerz – Market Chaos & Incredibly Important 200 Year Chart
May 31, 2012
In this piece exclusively for the King World News blog, Egon von Greyerz, founder and managing partner at Matterhorn Asset Management out of Switzerland, gives KWN readers globally an extremely important snapshot of where we are today and where key markets are headed in the future. He also provided vital charts.
“The Illusory Stock Market”
By Egon von Greyerz, Founder of Matterhorn Asset Management AG
May 31 (King World News) – Stock market investors have since 1999 been under the illusion that their stock portfolio has maintained its value or even gone up slightly. Since September 1999 the Dow is up around 7%. So investors are lulled into a false sense of security that although they haven’t achieved the profits they made in the 1990s, their stock portfolio has maintained its value.
Very few investors actually understand that they have lost over 80% of their money in real terms in the last 13 years. As the graph below shows, the Dow is down 82% against gold since 1999. So the illusory gain of 7% actually translates to a total destruction of capital in real terms.