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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The Wizard of Oz's picture


Pladizow's picture

Perhaps we should inquire with Warren?

Comay Mierda's picture

SPX about to fall off a cliff, priced in gold

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

Supernova Born's picture

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

Tango in the Blight's picture

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

resurger's picture

Correction: Bitchez**** BitcheZ!

eXMachina's picture

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

Karlus's picture

Yes, Gold bitches.

SheepDog-One's picture

A thousand Wall St media whores all shrieked out in terror then suddenly fell silent.

Lost Wages's picture

This shall not stand! Where is the Bernank?

Kaiser Sousa's picture

"now is a great time to buy iequities, especialy Apple..."


Jason T's picture

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

China - 2016

Water Is Wet's picture

Yeah, but you can't eat gold.

Dr. Engali's picture

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

Bam_Man's picture

What would the Martians think?

Karlus's picture

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

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

Dr. Richard Head's picture

And who HAD the gold will be pissed.  Possession and the law - it depends on what your holding.

Quinvarius's picture

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

Richard Head's picture

But it's a barbarous relic!


Quinvarius's picture

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

Long-John-Silver's picture

Gold and Silver are heading up now.

Ness.'s picture

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!!!!!

john39's picture

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

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.

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.

fuu's picture

Hmm what is that other great performer on the year?


Strider52's picture


I was going to say, I'm not much of a chart-reader (moo...), but isn't silver at the top of that list?  

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.

ghostzapper's picture

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?

Tyler Durden's picture

Why was AAPL 22% higher a month ago?

falak pema's picture

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

GetZeeGold's picture



That....and a good hit of brown acid.

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. 

Boozer's picture

Tyler -

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

On me.


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?


ghostzapper's picture

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

fireangelmaverick's picture

Was asking Tyler. You are right about it getting confusing. Sorry, should have specified.

Zombie Investor's picture

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.]

ParkAveFlasher's picture

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. 

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.

ParkAveFlasher's picture

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