Tuesday, May 10, 2016

Big, Baseless Rally Is Pointless; New All-Time Highs Pipe Dreams


And baseless.

Here's the deal. When stocks outperform - on a YTD basis - gold and/or silver, in constant dollar terms, then you might have something. Until that time, stocks are simply paper blowing in the wind. Even if stocks shoot to new highs (previous all-time highs were about a year ago), they'll likely e worth the same or less in inflation-weighted terms, whereas precious metals (and other select assets) will be solid.

Most gold and silver investors have patiently been loading up over the past four years (many of them for much longer than that) and they are now sitting pretty. There are a good number of precious metals investors who hope the price suppression, which has been obvious for a long time, continues for another six months to a year, so they can buy more at depressed levels.

Be patient, my friend.

Holy Short Squeeze, Batman!
S&P 500: 2,084.39, +25.70 (1.25%)
Dow: 17,928.35, +222.44 (1.26%)
NASDAQ: 4,809.88, +59.67 (1.26%)

Crude Oil 44.47 +2.37% Gold 1,267.80 +0.09% EUR/USD 1.1370 -0.13% 10-Yr Bond 1.76 0.00% Corn 380.75 +3.18% Copper 2.10 -0.28% Silver 17.12 +0.21% Natural Gas 2.15 +2.43% Russell 2000 1,128.83 +0.95% VIX 13.65 -6.31% BATS 1000 20,677.17 0.00% GBP/USD 1.4444 +0.26% USD/JPY 109.2850 +0.78%

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