【Coinpush】Senior analyst Christopher Aaron recently highlighted a noteworthy signal: the ratio of the Dow Jones Industrial Average to gold has reached its fourth major turning point.
What does this mean? Put simply—gold may experience several years of sustained strength, and investors who are heavily invested in traditional industrial stocks like the Dow and S&P 500 might need to prepare for long-term losses.
Data supports this assessment: the Dow-to-Gold ratio measures how many ounces of gold are needed to buy one share of each of the 30 components of the Dow. Historically, there have been three critical inflection points—1930-1933, 1968-1980, 2002-2011. Based on the average cycle pattern, during this cycle, the Dow relative to gold could decline for about 9.3 years, with a drop of up to 90.5%.
Even more concerning, Aaron believes this could be the most severe breakdown in history. In other words, the current decline might surpass the average of the previous three instances. The asset allocation strategy may need to be adjusted accordingly.
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Layer2Arbitrageur
· 4h ago
yo so aaron's basically saying traditional equity holders are about to get rekt for 9+ years? the math checks out on paper but nobody ever talks about the gas fees of rotating out of 500 positions lmao. 90.5% drawdown sounds juicy for basis point hunters tho ngl
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CryptoFortuneTeller
· 4h ago
Whoa, a 90.5% drop? This time they're really going all out.
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SandwichTrader
· 5h ago
Gold is really about to take off, and traditional stocks are in for a scare.
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SandwichVictim
· 5h ago
Damn, a 90.5% drop? That number sounds outrageous but also feels a bit off.
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Here comes the scary cycle theory again. Will history repeat itself? Anyway, I don't believe it.
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Gold is about to take off again? Why do I feel like I hear this every year?
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Traditional stocks are really going to crash this time... Maybe it's better to stockpile gold.
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Aaron, that guy, has spoken again. How did his last prediction turn out? Haha.
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90.5%? Are you writing a sci-fi novel here?
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Why does it feel like watching a horror story, but I also want to go all-in on gold?
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What about Bitcoin? Why is it never mentioned?
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If this really happens, the S&P people will be wiped out.
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Cycle patterns are terrifying, but can you really trust them?
Warning: The golden ratio inflection point is approaching; stock investors need to reassess risks
【Coinpush】Senior analyst Christopher Aaron recently highlighted a noteworthy signal: the ratio of the Dow Jones Industrial Average to gold has reached its fourth major turning point.
What does this mean? Put simply—gold may experience several years of sustained strength, and investors who are heavily invested in traditional industrial stocks like the Dow and S&P 500 might need to prepare for long-term losses.
Data supports this assessment: the Dow-to-Gold ratio measures how many ounces of gold are needed to buy one share of each of the 30 components of the Dow. Historically, there have been three critical inflection points—1930-1933, 1968-1980, 2002-2011. Based on the average cycle pattern, during this cycle, the Dow relative to gold could decline for about 9.3 years, with a drop of up to 90.5%.
Even more concerning, Aaron believes this could be the most severe breakdown in history. In other words, the current decline might surpass the average of the previous three instances. The asset allocation strategy may need to be adjusted accordingly.