The Gold/SPX ratio is ticking a 4+ year high and attempting a base breakout (all part of our counter-cyclical plan)
In another sign of a counter-cyclical market/economic environment, not to mention greatly improving gold mining fundamentals, the Gold/SPX ratio is ticking a new multi-year high. We have been noting this base as one of the last men standing in the way of the proper gold mining fundamental picture.
I exhumed the old “Macrocosm” graphic for NFTRH 853 this weekend, and here it is for your viewing pleasure. Please give allowance that the planets are not necessarily sized proportionally. But the larger the planet, the more important the fundamental consideration. For a good laugh you can see the “China/India love trade” and “cyclical inflation” touts as the minuscule planets they should be (ah gold promoters, an irrepressible bunch).
Moving on, here is the chart of the Gold/SPX ratio. I lean toward the stock market taking a bounce, and potentially a strong one. But at face value, we have the final and most important macro-fundamental holdout for gold mining coming into place.
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