Bloomberg Confirms that Gold was the Winning “Trade of Decade”
Regular readers of The Daily Reckoning will recall the “Trade of the Decade” we proposed ten years ago… to buy gold on dips and sell stocks on rallies. Now that the decade’s over Bloomberg seems to have caught up with the idea, confirming that gold investments have outperformed commodities, oil, high grade corporate bonds, treasuries, and stocks since the beginning of the year 2000.
According to Bloomberg:
“Investors who bought gold or commodities at the beginning of the decade should have tripled their money by the time the ball drops in New York’s Times Square on Dec. 31. Stock holders will be poorer.
“The CHART OF THE DAY shows returns on six asset classes, including reinvested interest or dividends where applicable. A $100 investment in gold would now be more than $380 while the same sum in commodities would have grown to about $357, according to the Standard & Poor’s GSCI Enhanced Total Return Index. Stock investors lost $10 in the decade.”
The full details including a chart are available in Bloomberg’s coverage of how gold beat all in a decade of ‘fear and greed.’