It’s a Stealth Bear Market in Stocks

This summer, we haven’t been able to go a day without hearing how the debt ceiling “crisis” is pushing stocks lower. Our chart today is an update on how the “stocks are going lower” news is worse than you think…
 
Regular DailyWealth readers know there are always two sides to a price. On one hand, you have the asset, product, or service being measured. On the other, you have the measuring “unit”… which is typically a paper currency – like the dollar, euro, or Swiss franc – or a “real money” currency #-ad_banner-#– like gold. Keeping the “two sides to a price” idea in mind lets you see things others do not.
 
The problem with measuring things in dollars these days is that it’s become more of a constantly declining laughingstock than a solid measuring unit. The dollars has plunged in value versus stronger currencies, like the Swiss franc and gold.
 
For example, while stocks are taking a beating right now, they are still near a 52-week high in dollar terms. But when you “price” them in a strong currency like gold, we see the S&P 500 index is in a bear market. The past few weeks have taken the index to a multi-year low when priced in “real money.”