JP Morgan Admits Defeat

Gold has provided investors with a superior return to stocks, bonds, and residential real estate over the past 20 years. 

We’d like to tip our hat to Wall St. megabank JP Morgan for assembling this data and pointing out that investors would have done well by largely ignoring their advice for the past two decades, or at least hedging against it, by investing in the yellow metal.

Think of what has transpired over the past 20 years. The dotcom crash levelled the Nasdaq by 78%, and then the Financial Crisis revealed fraud throughout real estate markets and the banks that funded them.

If you had anything resembling a typical asset allocation, it was difficult to avoid getting clobbered in some way, shape, or form. Stocks, bonds, and real estate all took major hits.

Not only did gold protect investors during those turbulent times, but it also held up so well over the risk-asset bull markets of the past 20 years that it outpaced the very assets it was primarily owned to protect.

The sheepdog turned out to be worth more than the sheep.

Over the course of 1999-2018, even as the Fed and the US government have moved heaven and Earth to prop up stocks, bonds, and residential real estate, gold has outperformed them all.

And with a national debt of $22 trillion and rising, we think gold’s real time to shine, relative to every other asset you see represented in the chart above, is still to come.