Gold was up +5% last week alone.
It was up as much as +2% this morning.
Gold’s Full Investing Cycle return (started in OCT 2018 when the US Cycle peaked) is +64%.
64%! How about that against a basket of stocks?
How about up against the Russell 2000 that is down -15%.
And you wonder why Hedgeye Nation is rocking and rolling. This is awesome!
The prevailing conditions this morning are
- Devaluation of the dollar and
- Falling bond yields
That's great for Gold.
You get a new low on the 10 Year Yield on a 3-Month rolling basis (about 56-57 basis points on that). So when real growth slows and real yields fall, gold goes straight up.
There's no good political narrative to explain why Gold is working.
Because then you would have to acknowledge that the real growth part (which is stagflation) is the predominant result of all this printing and giving away of money.
Think about that.