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

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Thu, 11/08/2012 - 15:21 | 2961541 Atlasshruggedme
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Gold bitches?

Thu, 11/08/2012 - 15:26 | 2961556 The Wizard of Oz
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Thu, 11/08/2012 - 15:35 | 2961609 Pladizow
Pladizow's picture

Perhaps we should inquire with Warren?

Thu, 11/08/2012 - 15:40 | 2961635 Comay Mierda
Comay Mierda's picture

SPX about to fall off a cliff, priced in gold

Thu, 11/08/2012 - 15:44 | 2961662 JPM Hater001
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Thu, 11/08/2012 - 15:44 | 2961665 Dr. Richard Head
Dr. Richard Head's picture

Why would anyone price anything in that relic when we have the incredible elastic dollar to use a measuring stick?  /sarc

Thu, 11/08/2012 - 15:57 | 2961721 ParkAveFlasher
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Thu, 11/08/2012 - 16:07 | 2961565 Supernova Born
Supernova Born's picture

The "counterparty risk" to the gold in your gold pan is a government bullet in your brain pan.

Thu, 11/08/2012 - 16:01 | 2961743 Tango in the Blight
Tango in the Blight's picture

Gold, not GLD (as the ad on the right advertises).

Thu, 11/08/2012 - 16:05 | 2961759 resurger
resurger's picture

Correction: Bitchez**** BitcheZ!

Thu, 11/08/2012 - 20:10 | 2962649 eXMachina
eXMachina's picture

At ZH it's bitchez!...The EZ is most important in this context. 

Thu, 11/08/2012 - 15:23 | 2961548 Karlus
Karlus's picture

Yes, Gold bitches.

Thu, 11/08/2012 - 15:24 | 2961550 SheepDog-One
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A thousand Wall St media whores all shrieked out in terror then suddenly fell silent.

Thu, 11/08/2012 - 15:25 | 2961554 Lost Wages
Lost Wages's picture

This shall not stand! Where is the Bernank?

Thu, 11/08/2012 - 15:27 | 2961560 Kaiser Sousa
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"now is a great time to buy iequities, especialy Apple..."


Thu, 11/08/2012 - 15:28 | 2961568 JustPrintMoreDuh
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Thu, 11/08/2012 - 15:30 | 2961582 Jason T
Jason T's picture

"We don't want the Ben confetti from Washington"

China - 2016

Thu, 11/08/2012 - 15:31 | 2961586 Water Is Wet
Water Is Wet's picture

Yeah, but you can't eat gold.

Thu, 11/08/2012 - 15:31 | 2961588 Dr. Engali
Dr. Engali's picture

Gold is building a nice cup and handle on the chart prepairing for lift off.

Thu, 11/08/2012 - 15:31 | 2961589 Bam_Man
Bam_Man's picture

What would the Martians think?

Thu, 11/08/2012 - 15:36 | 2961622 Karlus
Karlus's picture

In b4 dig it up and then bury it in another hole.

New Buffet rule, "He who HAS the gold, rules"

Thu, 11/08/2012 - 15:47 | 2961677 Dr. Richard Head
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And who HAD the gold will be pissed.  Possession and the law - it depends on what your holding.

Thu, 11/08/2012 - 15:50 | 2961695 Quinvarius
Quinvarius's picture

They would wonder why someone as valuable as Warren Buffet is not also being buried in a hole.

Thu, 11/08/2012 - 15:31 | 2961590 Richard Head
Richard Head's picture

But it's a barbarous relic!


Thu, 11/08/2012 - 15:36 | 2961621 Quinvarius
Quinvarius's picture

It is the key to global solvency, once the bankers steal enough of it.

Thu, 11/08/2012 - 15:33 | 2961597 Long-John-Silver
Long-John-Silver's picture

Gold and Silver are heading up now.

Thu, 11/08/2012 - 15:35 | 2961612 Ness.
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Thursday, November 08, 2012 13:08:45 (IR) US Pentagon Official: Iran has fired upon and missed a predator drone; the drone never entered Iranian airspace- Spokesperson notes that the drone was 16 miles away from the Iran coast.-


Here we gooooo!!!!!

Thu, 11/08/2012 - 15:40 | 2961647 john39
john39's picture

politburo hard at work I see...  if the event happened at all, i suspect it was well inside Iranian air space....

Thu, 11/08/2012 - 15:38 | 2961634 gaoptimize
gaoptimize's picture

Make it 4 in a row? Silver is my largest holding.

I'm asking the Zerohedge community to find little, legal and creative, ways to Go Galt.  Perhaps start by saying "No" to NGOs/charities performing functions that suppliment Government functions this holday season when they call, United Way, or CFC...and buy PMs or support limited Government causes instead.  If we put our minds to it, we can find many ways to undermine the beast and present the consequences of bad decisions more starkly to those who have made them.

Thu, 11/08/2012 - 15:53 | 2961703 Dr. Richard Head
Dr. Richard Head's picture

Everytime the Patrolman's Association rings my phone I let them go through their whole spiel.  Most recently the heart string was protecting kids against pedofiles.  In any event, after he asked me for a donoation I said something along the following lines -

"I would certainly love to donate some of my hard earned capital to your cause, but before I do I'd like to ask a question.  When do you feel your organization might actually focus on crimes against people and property instead of contstantly shaking down me and my fellow Americans for such trivial, non-violent offenses?  I can certainly point you to some big fish to catch at a variety of banks and capitals throughout the country if you'd like?"

He responded to something like he understood.

So now, I have withdrawn from voting, withdrawn from paying a variety of local taxes (ones where I can literally see the fraud), give the finger to every politician I come in contact with, withdrew all funds from the market and banks, violate every silly law I can find, and document all my resisitence on the YouTube and share it for all to see.  Hoepfully setting a good example of withdrawal from the system will lead others. If not, I am sure these is a nice cage with my name on it somewhere.

Thu, 11/08/2012 - 15:39 | 2961640 fuu
fuu's picture

Hmm what is that other great performer on the year?


Thu, 11/08/2012 - 15:43 | 2961660 Strider52
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I was going to say, I'm not much of a chart-reader (moo...), but isn't silver at the top of that list?  

Thu, 11/08/2012 - 15:39 | 2961642 fireangelmaverick
fireangelmaverick's picture


You criticize APPLE analysts for their earning estimates yet what youa re doing is projecting the past into the future.

Maybe it will outperform stocks over the next few years (I think that is likely) but it may still go down in nominal terms.

Thu, 11/08/2012 - 15:44 | 2961664 Tyler Durden
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Uh... what?

Thu, 11/08/2012 - 15:47 | 2961682 ghostzapper
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Tyler - much respect and thanks for all that you do.  My question would be given those projections why hasn't it broken out above the resistance at 1850?

Thu, 11/08/2012 - 15:52 | 2961700 Tyler Durden
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Why was AAPL 22% higher a month ago?

Thu, 11/08/2012 - 15:55 | 2961710 falak pema
falak pema's picture

I love the halcyon gold horizon, like all utopias...

Thu, 11/08/2012 - 22:02 | 2962982 GetZeeGold
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That....and a good hit of brown acid.

Thu, 11/08/2012 - 15:59 | 2961733 ghostzapper
ghostzapper's picture

Insane amount of hope and fluff built into everything leading up to QEinfinity.  believe me I am not defending AAPL in fact I just posted on it in another conversation. 

the chart for gold actually looks like it is building up for a big move either way.  all I am saying is that given how we already know they (meaning all central banks ultimately) will have to print and print and print, then why hasn't it already moved to all time highs in nominal and relative terms?  what else does it need to see?

for the record:  very, very bullish on gold long term just not convinced it is heading straight up anytime soon. 

Thu, 11/08/2012 - 17:00 | 2962000 Boozer
Boozer's picture

Tyler -

Let's have a few pints should you ever be in Connecticut.

On me.


Thu, 11/08/2012 - 16:19 | 2961809 fireangelmaverick
fireangelmaverick's picture

All right genius. Explain to me why COrrelation is Causation.

Explain to me why Japan's balance sheet expansion during the 90's did not budge Gold. In fact in Yen terms it had a massive bear market. Japan was the second largest economy back then was it not?


Thu, 11/08/2012 - 16:26 | 2961832 ghostzapper
ghostzapper's picture

Are you asking me?  it gets confusing with the responses. 

Thu, 11/08/2012 - 16:40 | 2961894 fireangelmaverick
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Was asking Tyler. You are right about it getting confusing. Sorry, should have specified.

Thu, 11/08/2012 - 15:45 | 2961667 ghostzapper
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I agree.

Thu, 11/08/2012 - 15:41 | 2961655 Zombie Investor
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What a surprise, now we find out:


[Two Iranian Su-25 fighter jets fired on an unarmed U.S. Air Force Predator drone in the Persian Gulf last week, CNN has learned.


The Obama administration did not disclose the incident, which occurred just days before the presidential election on November 1, but three senior officials confirmed the details to CNN.]

Thu, 11/08/2012 - 15:47 | 2961681 Quinvarius
Quinvarius's picture

Obviously warning shots.

Thu, 11/08/2012 - 15:56 | 2961713 ParkAveFlasher
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Well I hope that the drone pilot it safe and sound in his Seattle condo, and that his thumbs didn't cramp unnecessarily running evasive maneuvers. 

Thu, 11/08/2012 - 15:57 | 2961726 Bam_Man
Bam_Man's picture

Two Iranian Su-25 fighter jets

They must have stumbled upon that drone on their way to a "vintage warbird" air show.

Thu, 11/08/2012 - 16:04 | 2961753 ParkAveFlasher
ParkAveFlasher's picture

And they would have caught the drone if not for the "Eat at Ahmed's" banners they drag behind them.

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