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Would you call a 300% decline a crash? Come on….How can something drop 300%??? The S&P 500/Gold bugs ratio declined 300% over the past couple of years. Would anyone call that a crash? You pick the terms…kind of painful in my eyes!
The first of this year I shared the above chart with Subscribers, reflecting that another “Fish Mouth” spread was taking place between the S&P 500 and the Gold bugs index. The last time the spread was this large was 2000. What happened post 2000 for these two after the spread was large? S&P 500 had a bumpy three year ride and the Gold bugs index blasted off.
That was then, what about now? Another fish mouth spread is taking place, bigger than in 2000. The lower right chart reflects that since the start of this year, the S&P 500 is flat and the gold bugs index is up 25%.
Is this “Fish Mouth” spread about to narrow in a big way? Does this spread mean a generational opportunity is at hand? Possible.. see why here Looks like an opportunity is hand to me….Would be honored to have you as a Premium or Metals member if you find this type of idea of interest.