For Third Year In A Row, Gold Outperfoming Stocks

Tyler Durden's picture

Year-to-Date, the S&P 500 has just dropped back below Gold...Gold's performance year-to-date just surpassed that of the S&P 500 once again. If this remains the case into year-end, this will be the third year in a row that Gold has outperformed stocks. Looking forward, which 'asset' would you choose - Stocks with an implied volatility of 17% or Gold at 15.75% to the end of the year? Sharpe Ratio anyone? Perhaps asking your 'asset allocator' what his weighting is based on will be a worthwhile conversation - with the outperforming returns (past is not a predictor of the future - and noone knows) but lower forward risk expectations?

YTD performance across asset classes...

 

Or more easily visualized... the S&P 500's performance relative to Gold YTD...

 

and traders see more volatility in Stocks than Gold going forward...

 

Charts: Bloomberg