here a chart of ABX (gold stock) relative to SPX. green lines
are the bull markets in stocks (each 5 years), red line
the bear markets in stocks (2 years each) see chart in earlier
posting.
My point is that in the next two years gold stocks are likely
going to outperform SPX. Turning points in the ABX/SPX ratio
are not the same as turning points in the stock market. So it could
well be that the ratio set the low already in october. But could
also be that stocks are topping now and the ratio low will be
later in the year, which would mean another nasty breakdown in gold
stocks.
Personally I think that gold stocks have bottomed and offer a
nice opportunity for the next two years.... relative to SPX... and
probably relative to lots of other investments
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SPX and gold stocks
SPX monthly - timing
Posted by zwyss on 2nd of Feb 2014 at 11:27 am
an addition to my posting earlier:
here a chart of ABX (gold stock) relative to SPX. green lines are the bull markets in stocks (each 5 years), red line the bear markets in stocks (2 years each) see chart in earlier posting.
My point is that in the next two years gold stocks are likely going to outperform SPX. Turning points in the ABX/SPX ratio are not the same as turning points in the stock market. So it could well be that the ratio set the low already in october. But could also be that stocks are topping now and the ratio low will be later in the year, which would mean another nasty breakdown in gold stocks.
Personally I think that gold stocks have bottomed and offer a nice opportunity for the next two years.... relative to SPX... and probably relative to lots of other investments