Exactly When I’ll Buy Back into US stocks

Keep it Simple We began buying gold in the late 1990s, when it was still cheap. To illustrate just how cheap it was, for a brief moment in 1980 you could buy nearly all of the 30 Dow stocks for just 1 ounce.
By 1999, the Dow had risen so high that you would have needed 43 ounces to perform the same trick. At this point, you could scarcely go wrong buying gold and selling stocks. Stocks were expensive; gold was cheap.
We are too lazy to do real stock research. And we are too inattentive for trading or meticulous timing systems. We don’t aim to beat the market. ‘Live and let live’ is one of our market mottos.
Here’s an easy way to do it – a refinement of our Simplified Trading System (STS) described in previous Diary entries. You are either in stocks. Or you are in real money – gold. You buy stocks when they are cheap. You sell them when they are dear.
And you use roundish numbers to make it easy. When the Dow components are selling for 5 ounces of gold or less, you buy the Dow. When they are worth more than 20 ounces, you sell.

This post was published at Acting-Man on November 17, 2014.