Loading ...gold vs traditional 60/40 portfolio
This is one Jordan Roy-Byrne puts particular importance on, and for good reason. Think of all of the portfolio managers who will be forced to buy gold if gold breaks out vs the 60/40 portfolio. I have no idea if we are going to pull back here, but there is absolutely nothing bearish about this chart at all if you can see past a few months. Everything is aligned for a massive rise in this ratio. There are obviously no guarantees, but from a long term technical analysis point of view, this is as close to a no-brainer as you can get. I suppose many managers are waiting for a definitive, “I can see it from across the room” breakout, and perhaps even a backtest. Again, no guarantees, but this is possibly setting up something akin to the 1970’s gold uplegs.
Yep, you got it right. It Is all part and parcel of a capital rotation event. Get in your positions and strap on tight. No margin, there is enough inherent leverage in the stocks.
Agree, and confirmation of why portfolio managers are and will be incresing capital to the metals and miners is just look at YTD performance. Less than two months into the year but metals and the miners are some of the largest YTD returns and only getting started.