From the first quarter in 1996 through the first quarter in 2006, U.S. home prices soared 137%:
And from March 1990 through March 2000, the S&P 500 skyrocketed 312%:
But there’s one asset that has housing and the S&P bubbles beat: Gold. From March 2002 through March 2002, gold prices have surged 479%:
Looking at the returns by year, gold looks even more bubbly:
Of course, by 2006 housing was selling at record multiples to household incomes and rents. And by 2000, the S&P 500 was trading at record multiples to earnings and book value. And we all know what happened next for these two asset classes.
But how do you value gold? Can gold prices just continue to steadily march higher into perpetuity? Or are we on the cusp of yet another asset bubble?
Sound off below.
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