This is a long-term view since 1921 for myself to check later and for all my followers who are interested. You see periods where it was more beneficial to hold Gold and you see periods where it was more beneficial to hold Equities. The question is, are we on the verge of a breakout to the upside, so that the tide will soon turn in favour of Gold, and how long will the phase last?
Thank you for this great post. What exactly does the blue line represent and why does it stop at the end of 2020 on the chart?
ReallyMe
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@BlkGold, Thanks, the blue line is the smoothed value of the Gold/SP&500 ratio - Moving Average 52, offset -26. It ends 26 months ago because it is plotted with the offset -26.