A Gold Call Is a Rupee Call
Share our similarities, celebrate our differences. --M. Scott Peck
I've seen quite a few people on Twitter start talking up gold for 2013, and thought it might be worth addressing where the precious metal stands from an intermarket analysis standpoint. First, it is worth noting that over the past three years, gold has underperformed the U.S. stock market on every post quantitative easing (QE) announcement by the Federal Reserve. This seems counter intuitive since the perception of Quantitative Easing is that it is equivalent to "money printing" which ultimately forces higher prices in the real economy. However, despite the yellow metal's historical role as an inflation hedge, the price action clearly shows that it is actually when a deflationary scare is under way that gold leads relative to equities....231 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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