SOME PERSPECTIVE. The last time the ASX 200 was above 5,450, EVN...

SOME PERSPECTIVE.

The last time the ASX 200 was above 5,450, EVN was $1.015 – that was August 11, 2015.

Since that date, EVN is up 176.85%. The ASX 200 is down 0.40% over the same time period.

Since January 4, 2016, EVN is up 101.43%; the ASX 200 is up 3.43% (off the back of world-wide central bank back-stopping).

The last time USD hit .97, gold was trading at $1,120/oz.

The historical inverse relationships are breaking down. Gold has been rallying with the dollar, and, up until the 200,000 extra waiters were recently discovered sharing a flat in Brooklyn, it was even rallying with stocks.

In the last six weeks alone, EVN has experienced two instances of 10%+ days.

Despite some ridiculously anomalous non-farm payroll numbers, and an equally fudged series of non-GAAP ‘beats’ in the US reporting season (some companies were revised down up to a dozen times in the month leading up to their reporting day, then surprisingly ‘beat expectations on Wall Street’), gold still sits around $1,320.

Both its safe-haven credentials and relative strength and are being proven the more each day.

Despite record-breaking market highs, there is only one real ‘Goldilocks’ asset class here. If The Fed raises, markets crash – and gold goes up. If The Fed eases, bond yields crash – and gold goes up.

The S&P500 fairy tale may continue even longer, but by my reckoning it’s about five minutes to midnight.

Soon, some dithering old white-haired lady is going to look pretty stupid standing in front of a pumpkin.