Twelve Months In Two Charts

These two charts were made at ETF Replay.  Though limited in that only ETFs can be charted, these are Total Return charts which is a good thing.  In these charts I'm using ETFs as a proxies for asset classes as follows:  SPY, equities; BND, bonds; DBC, commodities; UUP, dollar index; GLD, gold.

These are 12 month charts.  They speak for themselves so I'll be brief.  The worst investment was cash, just as Bernanke drew up the game plan.  Those without capital or unable for other reasons to take investment risk, which I suspect is the majority of Americans,  have had the rug pulled out from beneath them.  Given the huge jump in commodity prices, statements from Washington about the benign nature of price inflation ring ever more hollow.  All those feeling giddy about their 401K and IRA profits (I admit I'm guilty) need to recalculate the numbers taking into account the near 11% US dollar depreciation.  Whoever in the administration Obama is saddled with investigating the reason for the rise in gasoline prices should ask members of the House of Representatives about their role in destroying the dollar.   

I failed to mention it last week, but we doubled up on our investment in UDN, the dollar down ETF.   Purchasing additional strong currency holdings seems prudent.