Finance and Investing

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Dennis Hackethal’s avatar
Dennis Hackethal·#4141

Apparently, stocks have fallen since the dot-com bubble when measured in gold instead of dollars: https://x.com/elerianm/status/1976237139185574170

Some comments suggest measuring stocks in gold is arbitrary, others say this development is simply due to inflation.

Are they right or is this development a deeper sign that the economy is in trouble?

Benjamin Davies’s avatar
Benjamin DaviesOP·#4143

Measuring the stock market in fiat is more arbitrary than measuring it in gold.

A short video relating to that:
https://youtu.be/AGNvdN1Lw9A?si=b5vO7kx_pTRgEgrZ

Criticized1*
Dennis Hackethal’s avatar
Dennis Hackethal·#4148

Wiener’s critique of the dollar applies to gold, too. Both fluctuate. I see no rational preference for gold following from his argument.

Criticism of #4143
Dennis Hackethal’s avatar
Dennis Hackethal·#4149

But gold isn’t fiat. The government can’t create more gold out of thin air.

Criticism of #4148Criticized1
Dennis Hackethal’s avatar
Dennis Hackethal·#4150

I don’t see how it matters for his argument. The value of anything fluctuates.

Criticism of #4149