We see a lot of debate on what will be a better investment this year, Gold or stocks. To approach this debate in a more effective way we took the XAUUSD:SPX ratio going back a century into the early 1900s. When the ratio rises Gold is outperforming the S&P500 (SPX), and vice versa when it declines.
A good indicator of a confirmed S&P500 (stocks) outperformance is...
Before anyone drinks (more) of the coolaid.
www.hussmanfunds.com
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www.hussmanfunds.com
An interesting perspective into gold valuation still significantly far from 80's all time highs.
Consolidation inside the triangle suggests we could see a breakout next 2-3 years. Only thing in the way of Gold dominance is the rise of Bitcoin ($BLX)
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The SPX/ Gold ratio is looking like the rally in equities may be hitting it's head on some resistance.
The price action is driving closer towards the overhead trendline of the descending triangle pattern, this will be an interesting level to watch, as a rejection at these levels would suggest an easing in equities and a relative gain in gold.
It is my personal...
