Counter-cyclical gold miners are in a base breakout vs. cyclical copper miners
So what could this mean? Anyone? Beuller?
To me it means that the ones who dig the monetary metal out of the ground, the counter-cyclical gold miners, are set to out-perform the ones who dig the cyclical metal out of the ground. Extrapolating further, that implies economic contraction out ahead.
During the inflationary recovery from 2020, after Powell’s Fed and Trump’s government pulled out every stop imaginable to bail out the economy, the counter-cyclical gold mining sector has finally asserted a new trend, and this is in support of our favored theme for 2025… err, economic contraction.
That is all. No gold or gold stock hype. No doom bearish stuff. Just a warning from another indicator that all’s not well beneath the surface of the economy. How long will it take for “discovery” by the mainstream? Market irrational longer than you can remain solvent (if you short it)? Maybe. Maybe not. But it is as we’ve been tracking; a counter-cyclical macro in formation.
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Gary I find it interesting this morning that the market is acting like it’s the beginning of the end, only the proportions are different.
As comments on financial matters like these get taken with a heavy weight, I just wanted to add a disclaimer that my comment was in no way serious :). Just my morning sentiment on the opening bell.
I hear ya, LoT. One of the hardest things is to filter daily noise and keep balance/focus. I work on that all the time.