Which market? Certainly not the Aussie market. Are you all 100%...

First 62598 Last

Share
Profile

Follow
gozinsa

4,000 Posts.

454

20/12/19

08:09

Post #: 42062768
Share

Originally posted by Dr.Who: ↑

Gold has a strong naegative correlation to yield. It's correlation to equities is less strong, gold does have periods moving lock step with equities but only when there is a climate of lower and lower yields.

Just a sniff of inflation and monetary policy will be neutral, which will be the amber light for gold. The red light will come shortly after when policy starts to adjust to keep inflation pick up in an orderly manner.

A strengthening economy does not bode well for gold. Interest rates (which determine gold demand) will inch back up - but not too strong to kill economic activity. Gold sell will become the order. 1360 by February in anticipation if the above playing out.

One day my hope is that you'll look back on this period and say "Thank goodness I took advantage of what turned out to be the longest and most profitable bull market in history."

We're already past 10-3/4 years. The market has already soared well over +370%.

Best of all, according to my indicators, the end is nowhere in sight.U.S. economic signals are flashing brilliantly.
Strong GDP.
Record low unemployment.
Near record consumer confidence.
Record corporate profits.
Low interest rates.
And household income at the highest level in 20 years.

Of course there have been dips, but those who jumped out on the slightest pullback would have missed out on a record-breaking rally. This year alone, the S&P 500 is already up nearly +27% and looks to climb a lot higher.

And yet, thanks to irrational fears, many excellent stocks are still "on sale."

Expand

Which market? Certainly not the Aussie market. Are you all 100% in US equites now? Yeah, fat chance. Hindsight is 20/20.
5 Upvote

0 Great analysis

Reply