"SAFE HAVEN INVESTMENTS" are following a similar pattern of having a 10% rally after a long 25%+ slide.... Gold First, Then Bonds. Both markets washed out at the end of 2013. After a first quarter bounce, gold resumed its decline, but bonds have kept going and reached the seemingly magic 10% rally level (on 20 year TLT, which doesn't factor in dividends paid along the way).
The percentage declines are similar (both greater than 25%) prior to the bottom and the rally of 10% is the same so far. The only difference this time is we are seeing a sharp drop in Gold relative to Bonds and it is setting up a spread. At some point gold becomes a buy, relative to bonds.
Let's see if we can nail when Gold will outperform TLT.
Tim 3:00PM EST, TLT 111.48 last, GLD 119.76 last. June 4, 2014
The percentage declines are similar (both greater than 25%) prior to the bottom and the rally of 10% is the same so far. The only difference this time is we are seeing a sharp drop in Gold relative to Bonds and it is setting up a spread. At some point gold becomes a buy, relative to bonds.
Let's see if we can nail when Gold will outperform TLT.
Tim 3:00PM EST, TLT 111.48 last, GLD 119.76 last. June 4, 2014
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