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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KingdomKum's picture

we few,  we happy few,  we band of silver holders  .  .  . 

monopoly's picture

Patience all, patience. This is not a short trade. Yes we will be scared again. But I feel confident about the outcome. :))

Tango in the Blight's picture

Right now it seems they can keep up this game 4ever. :(

Dr. Sandi's picture

The plate juggler looks great until the plates stop spinning fast enough to keep fooling gravity. Then it turns frantic.

Uh, oh. Now the unbroken plates are suddenly gathered up from their sticks, ending the show with one final bow.

Cue Ed Sullivan as the commercial runs and the guy takes the plates home with him.

The rest of us remain in our seats, wondering why the screen went black during the commercial break.

MeelionDollerBogus's picture

http://flic.kr/p/dbQiNW

Buy into every dip you can

and make sure to take those extra boat ridez, bitchez