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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 . 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 ?  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 . 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 .
We did a few interviews as to why Gold was collapsing, including this one on BNN  (Gold country). It is nuanced, and apparently not what people were expecting.
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:
 New Great Rotation: Commodities into Bonds: http://www.ritholtz.com/blog/2013/04/the-new-great-rotation-commodities-into-bonds/
 What Are Gold’s Fundamentals ?: http://www.ritholtz.com/blog/2013/04/what-are-golds-fundamentals/
 World’s Biggest ETF/Contrarian Indicator: GLD > SPY: http://www.ritholtz.com/blog/2013/04/worlds-biggest-etfcontrarian-indicator-gld-spy/
 back in October 2002: http://www.ritholtz.com/blog/2003/09/contrary-indicators-2000-–-2003-bear/
 this one on BNN: http://www.ritholtz.com/blog/2013/04/markets-rebound-as-gold-recovers/
 12 Rules of Goldbuggery: http://www.ritholtz.com/blog/2013/04/the-10-rules-of-goldbuggery/
 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...0.0.0.30184.108.40.206.0.0.0.0.0..0.0...0.0...1c..9.serp.cfilmOrLAD0
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