After a tumultuous week on major stock markets (the Dow Jones index fell by more than 1,000 points in a single trading day), stock prices rebounded somewhat. But the damage on credit markets is irreversible. Despite the fact that, for now, it seems that the correction was short-lived, this was only a taste of what is coming. Interest rates, both short-term and long-term rates, are on the rise and the “junk bond” market is starting to implode. It appears that the floodgates have been opened

Last week on Monday, the Dow Jones index lost more than a thousand points for the first time in history, a drop of 4.6%. This correction followed a decline in stock prices that had already started on the Friday before, although few investors had anticipated that the index would fall by this much. On Tuesday and Wednesday, stock prices seemed to recover somewhat, but on Thursday the most important indices in the United States fell again considerably.

Last week’s correction seems dramatic, but

This week a preliminary attempt to value gold with a different method. I have shown earlier how we can value the stock market: we can compare the replacement value of the underlying company assets with the price we pay for the same assets on the stock market. This ratio is also known as the “equity q ratio,” named after the Tobin q ratio which was first described by Nobel laureate James Tobin (Tobin would take both the equity and debt in his original formulation). This time, I try to do something similar with gold ánd base an initial gold price forecast for this year on our gold q ratio. But there remains plenty of work to do. If you feel prompted to contribute and collect data and assist me, please do not hesitate to let me know.