What Does Gold Know That Stocks Don't?
A quick glance at today's cross asset class market moves shows a clear standout. The massive outperformance of Gold (relative to USD strength, Stock weakness, and Treasury yields tumbling). However, focusing on a slightly longer-term context shows that it appears you can't keep a good gold market down as it has merely recovered from its over-zealous selling pressure of earlier in the week - to resync with FX, stocks, and bonds. Most importantly, as we pointed out yesterday, it is now clear once again that 'sexy, smart' stocks knew nothing then (for the fourth time this week) - but keep on believing, as we will focus on 'other' asset classes as a signal.
Today - across asset classes...looks like Gold is onto something...
but on a longer-term context, things have come back into line...
but more importantly note the green ovals where 'sexy, smart' stocks (blue) tried and failed to push higher again and again and again...seems gold was onto something.
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