Day after day, it’s the same old thing. A tiny handful of megacap stocks that just keep hitting lifetime highs like, of course, Amazon.
I just can’t get behind this. It’s nuts. The Greater Fool Theory gone madcap.
I can, however, get fully behind gold, which recently has been shaking off its doldrums.
I wanted to show a couple of interesting ratio charts with respect to gold. First is the gold/silver ratio. For some reason, spiked earlier, but it has settled down into its longer-term uptrend.
Of far more interest to me is the gold-to-stocks ratio (by way of GLD/IWM). What we have here is a very well-formed bullish basing pattern, complete with breakout and successful retracement.
I’m going to keep coming back to my phrase – – central banker repudiation – – that I believe gold’s ascent will represent far better than any words. I’m a believer, and I’ll happily cheer gold past $2,000, $3,000, and beyond.
