Measuring The Intrinsic Performance Of Stocks
• This is, of course, a long-term review.
• As with the 5 previous financial bubbles back to 1720, gold's real price declined with the example that blew out in 1Q 2000.
• Typically, once the bubble climaxes gold's real price increases and it generally outperforms most investment alternatives.
• While Wall Street focuses on nominal stock prices, earnings, and dividends, have the gains from 2002 until 2006 been due to increases in intrinsic value or due to currency depreciation?
• This analysis suggests the latter has considerable influence.
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Author: Bob Hoye
Bob Hoye
Institutional Advisors
The opinions in this report are solely those of the author. The information herein was obtained from various sources; however we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance.
Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk.
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