"Interesting observation (with caveats):
“In his latest market dispatch, the venerable technician Ian McAvity makes proper hash of the theory being bruited about by the usual suspect sources that gold is a bubble.at http://www.ritholtz.com/blog/2011/12/where-is-the-bubble-gold-or-credit/
At $1,900 an ounce, he observes, gold was 2.2 times its early 1980 peak. U.S. gross domestic product and federal debt, he goes on, are some 5.5 times their early 1980 levels, while the Standard & Poor’s 500 and overall credit-market debt are 11 to 12 times their levels in the early ’80s.
Thus, “the real bubble,” he contends, has been the “issuance of debt that is increasingly stifling any recovery in the Main Street economy.” And there is no sign it won’t continue to do so any time soon.
Little wonder, then, that he’s convinced we’re in the fierce grip of a bear market that could get quite ugly between now and next year’s election day, with the already-battered housing and financial sectors pacing the decline.”
