Dow Jones Index priced in Real Money - Gold

This is an interesting chart.
It is the Dow Jones INDEX priced in GOLD ie Real Money.


This is a very important chart.
It is telling us that stocks peaked in real money terms in 1999.
Nominal prices have surged higher but in real terms the market is down 82% from its peak.
It also means that gold has outperformed equities since 99.


The low in this chart was in 1980 at 1.3 when gold was at its peak.
So gold was clearly overvalued compared to equities in 1980.
In 80's the equity bull market began and gold was in a bear market until 99.
The ratio peaked in 99 at 42.
Here equities were heavily overvalued compared to gold.


The crowd hated gold and loved equities ex TECH in 99.
Since then its has been the opposite.
Gold is at $1500 now.