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 [2], 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...
[3]
but on a longer-term context, things have come back into line...
[4]
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.
Charts: Bloomberg