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Update: Rotation, Gold and Markets

Posted By Barry Ritholtz On April 17, 2013 @ 7:30 am In Gold & Precious Metals,Valuation,Weblogs | Comments Disabled

A quick note on some of our commentary in April — it has been an interesting month for TBP.

On April 9th, I mentioned that the Great Rotation theme was incorrect: It was not stocks into bonds, as is so commonly claimed. Rather, it was a New Great Rotation: Commodities into Bonds [1]. Since then, Bond yields have plummeted and gold has collapsed. Had I followed my own insights and put on a Gold short/Bond Long trade, it would have made some money. Alas, we are investors not traders.

This led to a comment asking the question: What Are Gold’s Fundamentals ? [2] Most of the Gold investors I see have a flawed understanding of what drives gold prices. That was followed with World’s Biggest ETF/Contrarian Indicator: GLD > SPY [3].  As far as contrary indicators go, this was similar to Pimco Total Return Bond Fund surpasses Vanguard S&P500 fund to become the largest mutual fund back in October 2002 [4].

We did a few interviews as to why Gold was collapsing, including this one on BNN [5] (Gold country). It is nuanced, and apparently not what people were expecting.

This all culminated in yesterday’s 12 Rules of Goldbuggery [6] — which went totally viral [7].

 

Back shortly . . .

 


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/04/update-rotation-gold-and-markets/

URLs in this post:

[1] New Great Rotation: Commodities into Bonds: http://www.ritholtz.com/blog/2013/04/the-new-great-rotation-commodities-into-bonds/

[2] What Are Gold’s Fundamentals ?: http://www.ritholtz.com/blog/2013/04/what-are-golds-fundamentals/

[3] World’s Biggest ETF/Contrarian Indicator: GLD > SPY: http://www.ritholtz.com/blog/2013/04/worlds-biggest-etfcontrarian-indicator-gld-spy/

[4] back in October 2002: http://www.ritholtz.com/blog/2003/09/contrary-indicators-2000-–-2003-bear/

[5] this one on BNN: http://www.ritholtz.com/blog/2013/04/markets-rebound-as-gold-recovers/

[6] 12 Rules of Goldbuggery: http://www.ritholtz.com/blog/2013/04/the-10-rules-of-goldbuggery/

[7] totally viral: https://www.google.com/search?client=firefox-a&hs=Cpl&rls=org.mozilla%3Aen-US%3Aofficial&q=Rules+of+Goldbuggery+ritholtz&oq=Rules+of+Goldbuggery+ritholtz&gs_l=serp.12...0.0.0.30166.0.0.0.0.0.0.0.0..0.0...0.0...1c..9.serp.cfilmOrLAD0

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