The Shenzhen Composite ended April at 0.29 gold ounces, up 0.03 ounces from March and up 126% from April of last year. The index was trading at an average price-to-earnings ratio of 49.67.
April’s close, 0.29 gold ounces, was as high as the price paid in August 2007, the peak of the previous bull market in equities. There has now been 28 months of year-over-year positive price increases, the longest length of time for the data available.
The month-over-month increase in the gold price of the Shenzhen Composite was 9.75%, but the price to earnings ratio only increased 9.64%, meaning the appreciation in stock prices was entirely driven by higher valuations.
