longer than you can remain solvent.

Exhibit A: gold vs the Dow.  Gold has given back all of its gains vs the Dow since the March 2020 crash.  Despite the Fed doubling its balance sheet and the currency in circulation going up by at least 20% since then.  Makes complete sense.

Additionally, based on the magnitude of the breakdown, it doesn’t look like gold or gold miners are going to be able to recover those highs against the Dow until much later this year or maybe even into 2022.  That’s the kicker for me.

what’s maybe even more depressing is that if you bought the gold miners near the peak in 2016 you basically haven’t even made any gains since then despite everything that has transpired since then, including the Powell pivot and the money printer goes brrrrrrrrrrr action since COVID.

At some point you have to question whether the market is actually irrational.