The two graphs below show nicely why the ECB was the odd one out in the recent central bank balance sheet expansion effort to inflate all problems away.
The gold price and the boom of the ETF market for commodities simulataneously came to a climax. Many market participants now believe USD 1000 level will be tested which currently works out as a 20% drop.
The chart of the dax – once the price return, once the the total return including dividends – shows clearly that without dividends the capital appreciation of equities has been unimpressive. But as is common knowledge dividends make up the lions share of long term profits, if reinvested. That’s one reason I’m always adamant that investors choose investments where they receive the full dividend and can reclaim witholding taxes etc. Over the long term those basis points add up to be very very meaningful.