Stocks Make New All-time Highs Relative To The Alternatives
January 8, 2021
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If you've felt that owning Gold or Bonds has been a better idea than buying Nasdaq stocks, this chart shows just how bad of an idea that was.
Even if you're never going to trade bonds or gold, as a stock market participant, it's important to follow these intermarket relationships.
Gold broke down relative to both stocks and the rest of the commodities space in Q4. Bonds broke down to new lows this week.
It's quite obvious that there is an overwhelming amount of demand for stocks, while there seems to be an abundance of supply of both bonds and precious metals. Plenty to go around. Investors can't sell them fast enough.
You're seeing the result in the chart above.
JC