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Gold’s Performance vs. the S&P 500?
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<p>[QUOTE="GoldFinger1969, post: 3929609, member: 73489"]<b><i><span style="color: #0000ff">Bingo !!</span></i></b></p><p><b><i><span style="color: #0000ff"><br /></span></i></b></p><p><span style="color: #000000">In order to compare 2 different asset classes, you can't have starting/ending biases. The way to avoid this is to use ROLLING PERIODS where you see over a 30-year period how each asset class does, advancing the staring and ending periods by 1 year as you advance over time.</span></p><p><span style="color: #000000"><br /></span></p><p><b><span style="color: #00b300">This takes into account total returns and volatility and eliminates timing biases.</span></b></p><p><span style="color: #000000"><br /></span></p><p><span style="color: #000000"><img src="https://static.seekingalpha.com/uploads/2019/10/20/1112099-15715765686651616.png" class="bbCodeImage wysiwygImage" alt="" unselectable="on" /></span></p><p><span style="color: #000000"><br /></span></p><p><span style="color: #000000">If you look at the chart above, you see that the higher volatility of gold as well as the <b>LACK OF INCOME/DIVIDENDS</b> caps the 30-year rolling returns at about 6%. Stocks are much closer to the post-1929 long-term average of about 10% compounded returns annually.</span>[/QUOTE]</p><p><br /></p>
[QUOTE="GoldFinger1969, post: 3929609, member: 73489"][B][I][COLOR=#0000ff]Bingo !! [/COLOR][/I][/B] [COLOR=#000000]In order to compare 2 different asset classes, you can't have starting/ending biases. The way to avoid this is to use ROLLING PERIODS where you see over a 30-year period how each asset class does, advancing the staring and ending periods by 1 year as you advance over time. [/COLOR] [B][COLOR=#00b300]This takes into account total returns and volatility and eliminates timing biases.[/COLOR][/B] [COLOR=#000000] [IMG]https://static.seekingalpha.com/uploads/2019/10/20/1112099-15715765686651616.png[/IMG] If you look at the chart above, you see that the higher volatility of gold as well as the [B]LACK OF INCOME/DIVIDENDS[/B] caps the 30-year rolling returns at about 6%. Stocks are much closer to the post-1929 long-term average of about 10% compounded returns annually.[/COLOR][/QUOTE]
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