Below is GDX divided by XME. QE has been negative for gold relative to industrial commodities, while the end of QE and has often marked a relative low.
The fact that gold has been looking relatively strong of late tells us what "the market" is starting to price in: another bout of monetary volatility. The pattern since 2008 has been inflationary melt-up followed by deflationary bust and a new round of monetary stimulus. The direction of XME in the coming month or two will tell us if that pattern holds or not.
Bill Smead: Read Between The Lines: Buffett Is As Bearish As He’s Ever Been
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I am not attuned to this market environment and I don’t want to spoil a
decent record by trying to play a game I don’t understand – Warren Buffett,
Letter ...
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