CHART: Stocks Priced In Gold Since 1886
But this isn't the case when you price the S&P 500 in gold.
Citi's Tobias Levkovich includes this chart of stock priced in gold. Levkovich actually uses the chart to make the point that stocks are attractive relative to gold.
From his latest note to clients:
Conversely, not tackling the fiscal problems would ensure a growth calamity down the line and thus must be addressed. In aggregate, the energy sector developments, the needed growth in mobile technology infrastructure investing, manufacturing competitiveness and normalization in housing activity dramatically more than offset the health care drag in our opinion. Add in some fiscal baby steps and more money coming into equities and the secular bull rally is entering its infancy. In March 2014, five-year returns from US stocks will look even better as the October 2007-March 2009 declines are calendared away. At that point, we suspect that retirement benefit consultants and actuaries will start recommending investors buy the equity asset class for performance. Figure 16 illustrates the potential for shifting assets back towards equities and stocks look very much poised to gain relative to gold, reversing the trend since 2000 (see Figure 17). Hence, the trend may very well be the stock market investor’s best friend in the years ahead.
Here's the chart:
