If things are so dour, why is the Dow doing so well?

Here's why.

In a nutshell, it's going up because we're experiencing true inflation right now. The government won't say that because they use CPI, which they know is not a good measure for inflation - "Core" CPI doesn't even include the price of food or energy! They use CPI as a way to hurt small investors, make the economy appear to be doing well when it's not, tell people they're doing better when they're not, etc.

When you look at the Dow from perspective of any healthy currency, any metals, crude oil, food, etc., it's not doing so hot. Rather poor, actually - mediocre at best.

Oh BTW - I may have encouraged people to consider TIPS (treasury inflation protected securities) mutual funds in the past. I don't think I would recommend them anymore, as they are tied to CPI (again, is not an accurate measure of inflation). I'd have to say that a better choice would be a similar security in another currency. For example, Canada has RRB (Real Return Bonds) and the UK has Index-Linked Gilts.

Trouble is, you can't get a mutual fund that has these kinds of securities in any meaningful way. The closest you can come is FFGPX, which claims some sort of global inflation protection. But if you look at their current holdings, they're all US securities! Even if they weren't it wouldn't matter because they explicitly say they "hedge," which means that if the dollar drops against the currencies the fund's holdings are in, then so does the value of the fund.

Thus (in addition to gold) I think you might consider unhedged global bond funds, in a hope that the hugely inflationary pressures are confined to the US and its closest trading partners.

Bummer.