https://secularinvestor.com/gold-stocks-fourfold/112470/
On the chart above, you can see the ratio between the S&P 500 and the HUI.
Everytime
the gold stocks started shooting higher, this ratio would crater. This
happened in the 2001 – 2002, and it is happening again. Even more so,
the current downturn has successfully tested, as you can see on the
chart.
We now expect the ratio to drop towards 2.5x, and maybe even lower.
Of
course, back at the turn of the century, not only did gold stocks start
a phenomenal run, also the S&P 500 came crashing down. This time
around, we don’t expect the general stock markets to crash. We more or less think stocks can go through a milder correction.
So
this leaves gold stocks exploding, once again, in the coming years. If
the S&P 500 index could hover around the 2k level, the HUI-index could run-up towards 800.
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